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Understanding the Management Environment

The document discusses the importance of understanding the external environment in management, highlighting factors that affect organizational performance such as economic, demographic, technological, sociocultural, political/legal, and global components. It emphasizes that managers must adapt to dynamic external forces to avoid operational failures. Additionally, it addresses current economic trends and issues, including rising income inequality and its implications for business leaders.

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11 views23 pages

Understanding the Management Environment

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ksunhee1827

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Fundamentals of Management 11th Ed. | Robbins, Coulter, De Cenzo

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organization’s culture is
Related documents like. I can be happy
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WOULDN’T it be nice
to one day
find a job
organization’s culture. Before that, however,
we need to look at the external environment
organizations face.
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Fundamentals
 Flashcards of Management 11th Ed. |youRobbins, Coulter, De Cenzo“Dynamic forces are sweeping across
enjoy in an organization you’re excited
to go to every day (or at least most days!)? the globe, reshaping our lives and creating
 Collections Although other factors influence job choice, a wave of opportunities. . . .”1 No successful
an organization’s culture can be an important organization, or its managers, can operate Study collections
Is the category for this document correct?  
indicator of “fit”—will I like working here
seem like a place where I can
without understanding the dynamic exter-
× Management
 Documents and does this nal environment that surrounds it. To bet-
fit in and contribute? Organizational cultures ter understand this external environment,
differ and so do people. In the second part of we need to look at the important forces
 Profile this chapter, we’ll look at what organizational that are affecting the way organizations are
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Learning Outcomes
4-1 Explain what the external environment is and why it’s important. p. 131
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4-2 Discuss how the external environment affects managers. p. 135
4-3 Define organizational culture and explain why it’s important. p. 139
4-4 Describe how organizational culture affects managers. p. 141
4-5 Describe current issues in organizational culture. p. 143
130

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CHAPTER 4 • The Management Environment 131
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What Is the External Environment and Why Is It Important?
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 Fundamentals of Management 11th4-1
Flashcards [Link]
| Robbins,
what the Coulter,
One ofDe
the Cenzo
biggest mistakes external environment
Factors, forces, situations, and events outside the
external environ- managers make today organization that affect its performance

ment is and why it’s is failing to adapt to

important.
 Collections the changing world.
That’s also one of the biggest
mistakes you can make as an employee! Study collections
Is the category for this document correct? When the volcano erupted in Iceland, who would have thought that it would × Management
 Documents Eyjafjallajökull
lead to a shutdown at the BMW plant in Spartanburg, South Carolina, or the Nissan Motor
auto assembly facility in Japan?2 Yet, in our globalized and interconnected world, such an oc-
currence shouldn’t be surprising at all. As volcanic ash grounded planes across Europe, sup-
plies of tire-pressure sensors from a company in Ireland couldn’t be delivered on time to the
 Profile BMW plant or to the Nissan plant. Because we live in a “connected” world, managers need to
be aware of the impact of the external environment on their organization.
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The term external environment refers to factors, forces, situations, and events out-
side the organization that affect its performance. As shown in Exhibit 4–1, it includes
 Logout several different components. The economic component encompasses factors such as
interest rates, Learn
inf lation, languages, math, history,
employment/unemployment economics,
rates, disposable income levels,chemistry and more
stock market f luctuations, and business cycle stages. The demographic component is
concerned withwith trends free StudyLib
in population Extension!
characteristics such as age, race, gender, educa-
tion level, geographic location, and family composition. The technological component
is concerned with■Distribute all flashcards
scientific or industrial [Link] intocomponent
The sociocultural small sessions
is
concerned with societal and cultural factors such as values, attitudes, trends, traditions,
■Get
lifestyles, beliefs, tastes,inspired
and patternswith a daily
of behavior. The photo
political/legal component looks at
federal, state, and local laws, as well as laws of other countries and global laws. It also
■Import
includes a country’s political sets from
conditions andAnki,
[Link], etccomponent encom-
And the global
passes those ■Addissues (like Active Recall
a volcano to political
eruption, your learning and get
instability, terrorist higher
attack, etc.) grades!
associated with globalization and a world economy. Although all these components po-
tentially constrain managers’ decisions and actions, we’re going to take a more in-depth
look at just two—economic and demographic.
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What Is the Economy Like Today?

Snapshots of the economic context:

● Digital currencies (also called virtual currencies or cryptocurrencies) are growing
Related documents explosively. In Sweden, for instance, the use of cash has fallen rapidly.3
● After years of minimal inflation, U.S. manufacturers and food companies are facing
rising material and ingredient costs as robust global economic growth stimulates
demand.4
● Europe’s economic recovery is being stifled by “zombie companies”—companies
that are being kept afloat by cash/credit infusions from banks and shareholders
despite the fact that they have not turned a profit in years. The result: thriving
businesses cannot get needed capital to grow.5
● Climate change is reshaping supply networks, manufacturing processes, resource
availability, and even workspace design.
● Entry-level jobs now are more “thinking” oriented and include more sophisticated
responsibilities, reinforcing our emphasis on employability skills such as critical
thinking, creative problem solving, and knowledge application and analysis.

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Exhibit 4–1 Components of the External Environment

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Political/Legal Sociocultural Add to ...  Download
 Fundamentals
Flashcards of Management 11th Ed. | Robbins, Coulter,
Demographics De Cenzo THE
ORGANIZATION Te chnological

Economic Global

 Collections Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed., © 2016, p. 73. Reprinted and
electronically reproduced by permission of Pearson Education, Inc., New York, NY.
Study collections
After several years in crisis mode, the U.S. economy and other global economies seem to have
Is the category for this document correct?    turned the corner. However, it’s not now, nor will it ever be, smooth sailing in the economic arena × Management
 Documents for managers. After all, when you’re dealing with important factors such as jobs, incomes, prices
of natural resources and consumer goods, stock market valuations, and business cycle stages,
managers have to pay attention to those that could constrain organizational decisions and actions.
Here’s a quick overview of some of the more interesting characteristics of today’s economy that
have the potential to influence a manager’s planning, organizing, leading, and controlling:

 Profile • The slowdown in productivity has moderated globally although it continues to lag in the

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United States. Productivity (how much a worker produces in a hour) is an important mea-
sure of how well an economy is doing. Factors that affect productivity include types and
 Logout pace of innovation, changes in work practices, technology, levels of workforce education/
Learn languages, math,
training/skill, etc. 6
history, economics, chemistry and more
• Global trade grew strongly from the late 1970s through 2008, when it collapsed during the
with free last
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global recession. However, recent indicators show global trade inching up, with the
strongest growth in Europe and Asia.7
■Distribute
• [Link] reviewing
employment is up.
8
into
The 4.1 percent small sessions
unemployment rate has held steady and is at
the lowest level in years. Workers are benefiting from broad-based gains in income and
■Get inspired
employment withforaover
daily photo
a decade. 9

Many U.S. workers, while employed in a steady job, may not have a reliable income.
■Import• sets from Anki, Quizlet, etc
Why? By using flexible work schedules, businesses are exerting more control over em-
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ployees’ work hours, to more volatile paychecks. 10

• Many businesses in low-wage industries (restaurants, retail, warehousing, and other ser-
vices) are using part-time workers to soften the impact of health-care law mandates.11
• According to a Pew Research Center poll, only 17 percent ofAdd to Chrome
Americans It''s free
believe the American
dream—work hard and you can achieve success and riches—is out of reach. By race/ethnic-
ity, the number who say it’s out of reach is 15 percent of whites, 19 percent of blacks, and 17
percent of Hispanics.12

Despite these numbers, the World Economic Forum has identified a significant risk facing
business leaders and policy makers over the next decade: “severe income disparity.”13 Let’s
Related documents briefly look at this issue to show that managers are constrained not just by the actual eco-
nomic numbers, but also by societal attitudes about the economy.

ECONOMIC INEQUALITY AND THE ECONOMIC CONTEXT. A Harris Interactive Poll

found that only 10 percent of adults think that economic inequality is “not a problem at all.”
Most survey respondents believed that it is either a major problem (57 percent) or a minor
problem (23 percent).14 Why has this issue become so sensitive? After all, individuals who
worked hard, took risks, and were rewarded because of their hard work or creativity have long
been admired. And yes, an income gap has always existed. In the United States, that gap be-
tween the rich and the rest has been much wider than in other developed nations for decades
and was accepted as part of our country’s values and way of doing things. However, our accep-
tance of an ever-increasing income gap may be diminishing.15 As economic growth languished
and sputtered, and as people’s belief that anyone could grab hold of an opportunity and have a
decent shot at prosperity wavered, social discontent over growing income gaps increased. The

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bottom line is that business leaders need to recognize how societal attitudes in the economic
omnipotent view of
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No category Uploaded by yeeching lai context also may create constraints as they make decisions and manage their businesses. management
Lastly, in this section on the economy, we want to take a look at an interesting phenom-
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enon taking place in the United States and around the globe—the sharing economy. for an organization’s success or failure

Fundamentals
 Flashcards of Management 11thTHEEd. | Robbins, Coulter, De Cenzo
SHARING ECONOMY. Have you heard of Airbnb, Uber, Mobike, DogVacay, management
symbolic view of

The view that much of an organization’s success

TaskRabbit, or Zipcar? These are just a few of the companies—maybe you’ve used one—that or failure is due to external forces outside manag-
are part of what is called the “sharing economy.” What is the sharing economy? It’s an eco- ers’ control

 Collections nomic environment in which asset owners share with other individuals through a peer-to-peer
sharing economy
service, for a fee, their underutilized physical assets (such as a home, car, clothing, tools,
Study collections
An economic environment in which asset owners
or other physical assets). Some analysts have included the sharing of knowledge, expertise, share with other individuals through a peer-to-peer
skills, or time, as well.16 The concept behind the sharing economy is putting underutilized service, for a set fee, their underutilized physical
assets or their knowledge, expertise, skills, or time

×
assets to good use. Asset owners “rent out” assets they’re not using to consumers who need

 Is the category for this document correct?

Documents   
those assets but who don’t want to, or who can’t afford to, purchase them. As the sharing
economy has grown, other terms—such as collaborative economy, on-demand economy,
Management
gig economy, freelance economy, peer economy, access economy, crowd economy, digital
economy, and platform economy—have been used to better describe the various iterations
of sharing that take place.17 Even some economics experts have said that these arrangements
aren’t really “sharing” but are better described as market-mediated since there’s a service or
 Profile company that mediates the exchange between consumers. They suggest that the arrangement

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is more like an “access economy” because what consumers are looking for is convenient ac-
cess to assets they need but don’t have, and they’re not concerned with developing a business
or social relationship with the asset owner.18 Whatever form or definition it takes, these new-
 Logout Learn languages, math, history, economics, chemistry and more
economy platforms are likely to remain an important part of our global economic system.
The other external component we want to specifically look at is demographics. Why?
with
Changes and trends free
in this StudyLib
component tend to be Extension!
closely linked to the workplace and managing.

◂ ◂ ◂ Classic
■Distribute Concepts
all flashcards in Today’s
reviewing into small Workplace
sessions ▸ ▸ ▸
■Get inspired with a daily photo Symbolic view of management:
Just how much difference does
■Import sets from Anki, Quizlet, etc
a manager
• Manager’s ability to affect performance outcomes is con-
make in how an strained by external factors.
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organization performs? to your learning and get
• Managers higher
don’t grades!
have a significant effect on organization’s
performance.

Management theory proposes two perspectives in answer- • Performance is influenced by factors over which managers
ing this question: the omnipotent view and the symbolic
Add tocustomers,
have little control (economy, Chrome It''s free
governmental poli-
view. cies, competitors’ actions, etc.).

Omnipotent view of management: • Managers symbolize control and

influence by developing plans,
• Managers are directly responsible Managers: making decisions, and engaging in
for an organization’s success or
Related documents failure. All-powerful other managerial activities to make
sense out of random, confusing,
• Differences in performance are
due to decisions and actions of
or helpless? and ambiguous situations.
• Manager’s part in organizational
managers.
success or failure is limited.
• Good managers: anticipate change, exploit opportunities,
correct poor performance, lead their organizations. In reality, managers are neither all-powerful nor helpless.
But their decisions and actions are constrained. External con-
• Profits c. Managers get the credit and rewards.
straints come from the organization’s external environment
• Profits T. Managers often get fired. and internal constraints come from the organization’s culture.
• Someone—the manager—is held accountable for poor
Discussion Questions:
performance.
• This view helps explain turnover among college and pro- 1 Why do you think these two perspectives on management
fessional sports coaches. are important? How might these concepts help you succeed
in your role as an employee of an organization? Explain.
2 How are these views similar? Different?

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What Role Do Demographics Play?

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No category Uploaded by yeeching lai Demography is destiny. Have you ever heard this phrase? What
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it means is that the size and characteristics of a country’s popu- to ...  Download
lation can have a significant effect on what it’s able to achieve.
Fundamentals
 Flashcards of Management 11th Ed. | Robbins, Coulter, De Cenzo For instance, experts say that by 2050, “emerging econo-
mies led by India and China will collectively be larger than
the developed economies. Small European nations with low
birthrates such as Austria, Belgium, Denmark, Norway, and
 Collections Sweden will drop off the list of the 30 biggest economies.”19
Demographics—the characteristics of a population used for
purposes of social studies—can and do have a significant im- Study collections
pact on how managers manage. Those population characteris-

Is the category for this document correct?   

tics include things such as age, income, sex, race, education
× Management
 Documents level, ethnic makeup, employment status, geographic location,
and so forth—pretty much the types of information collected
on governmental census surveys.

Imagine China/Newscom
Jack Ma, chairman of Chinese e-commerce

 Profile
firm Alibaba, is training young Africans about
entrepreneurship, the Internet, and the value
Age is a particularly important demographic

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of continual learning. With a large percent-
age of young people in Africa’s fast-growing
for managers.
population, age is an important demographic

 Logout
for domestic and global managers as they
Why? Because the workplace often has different age groups all working together. (See
Learn languages,
educate and develop skills young Africans
need to succeed in the workplace. math,
Chapter 10, p. 378–381, for a history,
more detailedeconomics,
look at the challengeschemistry and more
of generational differences in
the workplace.) Baby Boomers. Gen X. Gen Y. Gen Z. Ever heard or seen these terms? They’re
with free StudyLib
names Extension!
given by population researchers to four age groups found in the U.S. population.
• Baby Boomers are those individuals born between 1946 and 1964. You’ve heard so much
■Distribute all“boomers”
about flashcards
because reviewing
there are so many into small
of them. sessions
The sheer number of people in that co-
hort has meant they’ve had a significant impact on every aspect of the external environment
■Get inspired with a daily photo
(from the educational system and entertainment/lifestyle choices to the Social Security
■Import sets
system,from Anki,
health-care Quizlet,
choices, etc as they’ve gone through various life-cycle stages.
and so forth)
• Gen X is used to describe those individuals born between 1965 and 1977. This age group
■Add Active Recall
has been calledto
the your learning
baby bust generation and
becauseget higher
it followed the grades!
baby boom and is one of
the smaller age cohorts.
• Gen Y (or the “Millennials”) is an age group typically considered to encompass those
individuals born between 1978 and 1994. As the childrenAdd of the to
Baby Chrome
Boomers, thisIt''s
age free
group is also large in number and making its imprint on external environmental conditions
as well. From technology to clothing styles to work attitudes, Gen Y, now the majority age
group in the workforce, is helping shape today’s workplaces.20
• Gen Z is the youngest identified age group. Although demographers don’t agree on the exact
range of birth years for Gen Z, most group them as being born between 1995 and 2010. Gen
Related documents Z is huge; those under age 20 represent 25.9 percent of the U.S. population.21 One thing that
characterizes Gen Z is that it is the most diverse and multicultural of any generation in the
United States.22 Another thing that characterizes this group is that their primary means of social
interaction is online, where they freely express their opinions and attitudes. It’s the first group
whose only reality revolves around the “Internet, mobile devices, and social networking.”23
Demographic age cohorts are important because large numbers of people at certain stages
in the life cycle can constrain decisions and actions taken by managers of businesses, govern-
ments, educational institutions, and other organizations. Studying demographics involves
looking not only at current statistics, but also at future trends. What are some future trends?
• Recent analysis of birth rates shows that more than 80 percent of babies being born world-
wide are from Africa and Asia.24
demographics • Two-thirds of India’s 1.2 billion people are below 35 years of age.25
The characteristics of a population used for pur- • By 2050, it’s predicted that China will have more people age 65 and older than the rest of
poses of social studies
the world combined.26

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• For most of human history, individuals over the age of 65 have never exceeded 3 or 4 percent technology
 Home
No category Uploaded by yeeching lai of a country’s population. By 2050, however, this number could potentially reach 25 percent, Any equipment, tools, or operating methods that
on average.27 are designed to make work more efficient
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• By 2060, the population of older Americans is expected to more than double.28
Fundamentals
 Flashcards of Management 11thJustEd. | Robbins,
imagine Coulter,
how these population trends are likelyDe Cenzo
to impact global organizations and the
way managers manage.

 Collections How Does the External Environment Affect Managers?

Knowing what the various components of the external
Study collections
4-2 Discuss how environment are and examining certain aspects of that
×
 Is the category for this document correct?
Documents   the external  environment are important for managers. However,
understanding how the environment affects manag-
Management
environment
ers is equally as important. We’re going to look at
affects managers. three ways the external environment constrains and
challenges managers: (1) through its impact on jobs
and employment, (2) through the environmental un-
 Profile certainty that is present, and (3) through the various stakeholder relationships that exist

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between an organization and its external constituencies.

JOBS AND EMPLOYMENT. As any or all of the external environmental conditions

 Logout change, one ofLearn languages,
the most powerful constraints math,
managers history, economics,
face is the impact of such changeschemistry and more
on jobs and employment—both in poor conditions and in good conditions. The power of
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::::::: Managing
■Distribute Technology
all flashcards in Today’s
reviewing Workplace
into small sessions :::::::
■GetCANinspired
TECHNOLOGY IMPROVE
with a daily photo THE WAY MANAGERS MANAGE?
■Import
Continuing advancements sets from
in technology Anki,
offer many Quizlet,
exciting possi- etc
organizational location. With notebook and desktop computers,
bilities for how workers work and managers manage. Te c h n o l o g y tablets, smartphones, organizational intranets, and other IT tools,
■Add Active Recall to your
includes any equipment, tools, or operating methods that are de-learning and get
organizational higher
members grades!
who work mainly with information can do
signed to make work more efficient. that work from any place at any time.
One area where technology has had Eighty billion. That’s Finally, technology is also changing the
an impact is in the process where the number of “things” Add
way managers tomanage,
Chrome It''s
especially free
in terms of
inputs (labor, raw materials, and the ( s m a r t p h o n e s , s m a r t w a t c h e s , how they interact with employees who may
like) are transformed into outputs climate-control system sensors, be working anywhere and anytime. Effectively
(goods and services to be sold). In kitchen refrigerators, cars, etc.) communicating with telecommuting individu-
years past, this transformation was IDC predicts will be connected als who may simply be working from home or
Related documents usually performed by human labor. to the Internet by 2025. This who may be working halfway around the world
With technology, however, human Internet of Things (IoT) and ensuring that work goals are being met
labor has been replaced with elec- is transforming businesses are challenges that managers must address.
tronic and computer equipment. and disrupting industries and Throughout the rest of the book, we’ll look at
From robots in offices to online s o c i e t i e s a r o u n d t h e w o r l d . 29 how managers are meeting those challenges in
banking systems to social networks the ways they plan, organize, lead, and control.
where employees interact with customers, technology has made
the work of creating and delivering goods and services more ef- Discussion Questions:
ficient and effective. 3 Is management easier or harder with all the available technol-
Another area where technology has had a major impact is in ogy? Explain your position.
information. Information technology (IT) has created the ability to 4 What benefits does technology provide and what problems does
circumvent the physical confines of working only in a specified technology pose for (a) employees and (b) managers?

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environmental uncertainty
this constraint was painfully obvious during the past global recession as millions of jobs
 Home
No category Uploaded by yeeching lai The degree of change, predictability of change, were eliminated and unemployment rates rose to levels not seen in many years. Although
and complexity in an organization’s environment such readjustments aren’t bad in and of themselves, they do create challenges for managers
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who must balance work demands and having enough people with the right skills to do an
Fundamentals of Management 11th Ed. | Robbins, Coulter, De Cenzo
environmental complexity
organization’s work.
 Flashcards
The number of components in an organization’s
environment, how similar the components are, and
the extent of knowledge that the organization has
about those components
Flexible Work Arrangements:
 Collections stakeholders
Any constituencies in an organization’s environ-
As companies embrace new forms of flexibility in the workplace to adapt to chang-
ment that are affected by that organization’s deci- ing market needs, have you thought about what YOU want “work” to look like? What
sions and actions type of work model appeals to you? Traditional? Flexible? Something in between? Study collections
Is the category for this document correct?    able,Nottheyonlyaffectdohow
changes in external conditions affect the types of jobs that are avail- × Management
 Documents those jobs are created, designed, and managed. For instance, many
employers are using f lexible work arrangements with tasks done by freelancers hired on
an as-needed basis, or by temporary workers who work full-time but are not permanent
employees, or by individuals who share jobs. Keep in mind that these approaches are
used because of the constraints from the external environment. As a manager, you’ll
 Profile need to recognize how such work arrangements affect the way you plan, organize, lead,
and control. Flexible work arrangements have become so prevalent and such an impor-
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tant management approach today that we’ll discuss them in other chapters as well. Be
sure to pay attention to these discussions as it will help you as you envision and plan for
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ENVIRONMENTAL UNCERTAINTY. Another constraint posed by external
environments is the amount of uncertainty found in that environment, which can affect
organizational outcomes. Environmental uncertainty refers to the degree of change, pre-
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dictability of change, and complexity in an organization’s environment. The matrix in
■Get inspired
Exhibit 4–2 with
showsathese
dailytwophoto
aspects.
The first dimension of uncertainty is the degree of unpredictable change. If the com-
■Importponents
sets infrom Anki, Quizlet,
an organization’s etcchange frequently and the change is unpredict-
environment
able, it’s a dynamic environment. If change is minimal and is predictable, it’s a stable one.
■Add Active
A stableRecall to your
environment might be learning and
one in which get
there arehigher grades! few techno-
no new competitors,
logical breakthroughs by current competitors, little activity by pressure groups to inf luence

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Exhibit 4–2 Environmental Uncertainty Matrix
Degree of Change
Stable Dynamic
Cell 1 Cell 2
Related documents Stable and predictable environment Dynamic and unpredictable environment
Few components in environment Few components in environment
Simple

Components are somewhat similar Components are somewhat similar but

Degree of Complexity

and remain basically the same are continually changing

Minimal need for sophisticated Minimal need for sophisticated
knowledge of components knowledge of components

Cell 3 Cell 4
Stable and predictable environment Dynamic and unpredictable environment
Complex

Many components in environment Many components in environment

Components are not similar to one Components are not similar to one another
another and remain basically the same and are continually changing
High need for sophisticated High need for sophisticated
knowledge of components knowledge of components

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Fundamentals of Management 11th Ed. | Robbins, Coulter, De Cenzo
nal concern is ongoing competition from local and
 Flashcards regional competitors. Another concern is changes in
government policies that are leading to higher costs
for electricity and water. Almarai is therefore focus-
ing on improving efficiencies to boost profitability
 Collections and arranging long-term supply sources through
its international subsidiaries.30 In contrast, the re-
corded music industry faces a dynamic (highly Study collections
uncertain and unpredictable) environment. Digital

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formats, apps, music-streaming sites, and artists
  × Management
 Documents releasing selected songs on their personal social
media accounts turned the industry upside down
and brought high levels of uncertainty.
The other dimension of uncertainty describes Manjunath Kiran/AFP/GettyImages Software developers and designers from com-
the degree of environmental complexity, which looks at the number of components in munities throughout the world are valuable
stakeholders for Yahoo!. The company builds
an organization’s environment, how similar the components are, and the extent of the relationships with these computer experts by
 Profile knowledge that the organization has about those components. An organization that has few staging hacking events, like the one shown

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competitors, customers, suppliers, or government agencies to deal with, or that needs little here in Bangalore, India, that may result in
information about its environment, has a less complex and thus less uncertain environment.
technological innovations.

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at Exhibit 4–2, Learn languages,
each of the math,
four cells represents differenthistory,
com- economics, chemistry and more
binations of degree of complexity and degree of change. Cell 1
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the lowest level of envi- Making Ethical Decisions in
ronmental uncertainty and cell 4 (dynamic and complex environ- Today’s Workplace
■Distribute all flashcards reviewing into small sessions
ment) the highest. Not surprisingly, managers have the greatest
influence on organizational outcomes in cell 1 and the least in
cell 4. Because■Get Walt Disney Company. Star Wars. Two powerful forces combined.
inspired
uncertainty is a threat towith a daily photo
an organization’s effec-
But is that force for good or for not-so-good?31 It’s not surprising
tiveness, managers try to minimize it. Given a choice, managers
would prefer to ■Import
operate in the sets from Anki,
least uncertain Quizlet,
environments, but etc
that the popularity of the Star Wars franchise has given Walt Disney
they rarely control that choice. In addition, the nature of the ex- Co. exceptional power over the nation’s movie theaters. The theater
■Add Active Recall to your
ternal environment today is that most industries are facing more learning and
owners wantget higher
the Star grades!
Wars releases, and there’s only one way to get
dynamic change, making their environments more uncertain. them...through Disney. With the latest release, movie theaters had to
agree to “top-secret” terms that many theater owners said were the
MANAGING STAKEHOLDER RELATIONSHIPS. How does Add totheyChrome
most oppressive and demanding had ever [Link]''s free
Not only were
Amazon continue to enter and dominate ever-widening markets? they required to give Disney about 65 percent of ticket revenue, there
One reason is that it understands the importance of building rela- were also requirements about when, where, and how the movie
tionships with its various stakeholders: customers, advertisers, could be shown. You’d think that because Disney needs the theaters
shippers, suppliers. The nature of stakeholder relationships is an- to show their movies they might be better off viewing them as “part-
other way in which the environment influences managers. The
Related documents more obvious and secure these relationships, the more influence
ners” rather than subordinates. What do you think?
managers will have over organizational outcomes.
Stakeholders are any constituencies in an Discussion Questions:
organization’s environment that are affected by that 5 Is there an ethical issue here? Why or why not? What stake-
organization’s decisions and actions. These groups holders might be affected and how might they be affected?
have a stake in or are significantly influenced by what How can identifying stakeholders help a manager decide the
the organization does. In turn, these groups can influence the most responsible approach?
organization. For example, think of the groups that might be af- 6 Working together in your “assigned” group, discuss Disney’s ac-
fected by the decisions and actions of Starbucks—coffee bean tions. Do you agree with those actions? Look at the pros and cons,
farmers, employees, specialty coffee competitors, local commu- including how the various stakeholders are affected. Prepare a list of
nities, and so forth. Some of these stakeholders, in turn, may im- arguments both pro and con. (To be a good problem solver and criti-
cal thinker, you have to learn how to look at issues from all angles!)
pact the decisions and actions of Starbucks’ managers. The idea
that organizations have stakeholders is now widely accepted by
both management academics and practicing managers.32

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Exhibit 4–3 identifies the most common stakeholders an organization might have to deal
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can affect what an organization does and how it operates.
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Why should managers even care about managing stakeholder relationships? For one
Fundamentals
 Flashcards of Management 11th Ed. | Robbins, Coulter, De Cenzo thing, it can lead to desirable organizational outcomes such as improved predictability of
environmental changes, more successful innovations, greater degree of trust among stake-
holders, and greater organizational flexibility to reduce the impact of change. For instance,
social media company Facebook is spending more on lobbying and meeting with government
 Collections officials as lawmakers and regulators look at sweeping changes to online privacy laws. The
company is “working to shape its image on Capitol Hill and avert measures potentially dam-
aging to its information-sharing business.”33
Can stakeholder management affect organizational performance? The answer is yes!
Study collections
Management researchers who have looked at this issue are finding that managers of high-
Is the category for this document correct?   performing companies tend to consider the interests of all major stakeholder groups as they × Management
 Documents make decisions.34
Another reason for managing external stakeholder relationships is that it’s the
“right” thing to do. Because an organization depends on these external groups as
sources of inputs (resources) and as outlets for outputs (goods and services), managers
should consider the interests of stakeholders as they make decisions. We’ll address this
 Profile issue in more detail in the next chapter when we look at corporate social responsibility
and business ethics.
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As we’ve tried to make clear throughout this section, it’s not going to be “business as
usual” for organizations or for managers. Managers will always have hard decisions to make
 Logout about how they do business and about their people. It’s important that you understand how
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ences. Now, we need to switch gears and look at the internal aspects of the organization—
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its culture.

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■Get inspired withOrganizational
Exhibit 4–3 a daily photoStakeholders
■Import sets from Anki, Quizlet, etc
Employees Customers
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Unions Social and Political
Action Groups
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Shareholders Competitors
Organization

Trade and Industry

Communities
Associations

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Fundamentals of Management 11thOrganizational

Ed. | Robbins, Coulter, De CenzoCulture?
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 Flashcards
EACH OF US HAS A UNIQUE PERSONALITY that influences the way we
 Collections act and interact. An organization has a personality, too—we call it CULTURE.
Here’s what YOU need to know about organizational culture! Study collections
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 Documents

Smith Collection/Gado Images/Alamy Stock Photo

4-3 and
Define organizational culture
 Profile explain why it’s important.

1
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it on the basis of what
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how members perceive orwith a daily
describe thephoto
culture,
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3 Culture■Add Active
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organizational levels, they tend to describe the Add to Chrome It''s free
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Google has created a creative and in-
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7
of Management 11th Ed. |Dimensions of Organizational
Robbins, Coulter, De Cenzo Culture
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Exhibit 4–4

 Collections
Degree to which
employees are expected
to exhibit precision,
analysis, and attention
Degree to which
employees are
to detail
Degree to which
managers focus on results
Study collections
encouraged to be or outcomes rather than

×
innovative and on how these outcomes
Attention to
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to take risks are achieved

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Detail

Innovation and Outcome
Risk Taking Orientation

Organizational
 Profile Stability
Culture People

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Orientation

Degree to which
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decisions and actions
Team
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Degree to which
employees are aggressive
into
Degree tosmall
which
is organized
sessions
■Get inspired with than a daily photo
and competitive rather around teams rather
cooperative than individuals

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How Can Culture Be Described?
The■Add Active Recall
seven dimensions (shown into your
Exhibit learning
4–4): 35 and get higher grades!
• Range from low (not typical of the culture) to high (especially typical of the culture).
• Provide a composite picture of the organization’s culture. Add to Chrome It''s free
An organization’s culture may be shaped by one particular cultural dimension more than the others, thus
influencing the organization’s personality and the way organizational members work. For example:
— Apple’s focus is product innovation (innovation and risk taking). The company “lives and breathes” new-

Related documents product development, and employees’ work behaviors support that goal.
— Southwest Airlines has made its employees a central part of its culture (people orientation) and shows this
through the way it treats them.

Where Does Culture Come From? How Do Employees Learn the Culture?
Usually reflects the vision or mission of founders. Organizational stories: narrative tales of significant events or people.
Founders project an image of what the organization should be Corporate rituals: repetitive sequences of activities that express
and what its values are. and reinforce important organizational values and goals.
Founders can “impose” their vision on employees because of Material symbols or artifacts: layout of facilities, how
new organization’s small size. employees dress, size of offices, material perks provided to execu-
tives, furnishings, and so forth.
Organizational members create a shared history that binds Language: special acronyms; unique terms to describe equipment,
them into a community and reminds them of “who we are.” key personnel, customers, suppliers, processes, products.

140

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How Does Organizational Culture Affect Managers?
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Ambrosia Humphrey, vice president of talent at
 Fundamentals of Management 11th4-4
Flashcards Ed. | Robbins, Coulter, De Cenzo Describe how organi- Hootsuite, understands the power of organiza-
strong cultures
Cultures in which the key values are deeply held
zational culture affects tional culture and how it affects her as a manager. and widely shared

managers. Nurturing and nourishing the company’s culture is

one of her top priorities. And she does this by con-
 Collections tinually creating employee experiences that reflect
an important company value—transparency. For instance, she’s organized all-staff “Ask
Me Anything” discussions with the company’s CEO. Another tactic she’s used is employee Study collections
“hackathons” in which staff members get together to tackle problems. And, of course, she

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embraces social media as part of her commitment to transparency to employees, customers,
  × Management
 Documents and the community. Employees are encouraged to tweet about their perspectives on what
it’s like to work at Hootsuite. Those postings have ranged from pictures taken at rooftop
meetings to employees complimenting other employees for their hard work to links to media
reports about the company as a great place to work.36
The two main ways that an organization’s culture affects managers are (1) its effect on
what employees do and how they behave and (2) its effect on what managers do.
 Profile
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How Does Culture Affect What Employees Do?
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tomer service, hardand more
Southwest Airlines’ strong culture of cus-
work, respect, caring, and
“I think of culture as guardrails . . . what you stand for, fun affects what its employees do and how
withthe
essentially free StudyLib
ground Extension!
rules so that people know how to they behave. After Hurricane Harvey, pilots
and aircrew assisted in the Operations Pets
operate.”37 Alive rescue effort by transporting orphaned

■Distribute all flashcards reviewing into small sessions animals from shelters in Houston to a pet
center in San Diego where they became avail-
able for adoption.
■Get inspired with a daily
Remember what we said as we debunked the chapter-opening
myth. You want to look for a culture where you will fit in and
photo
■Import
thrive. An organization’s culturesets
has an from
effect onAnki, Quizlet, etc
what employ-
ees do, depending on how strong, or weak, the culture is. Strong
cultures—those ■Add Active
in which the Recall
key values to your
are deeply held andlearning and get higher grades!
widely shared—have a greater influence on employees than do
weaker cultures. The more employees accept the organization’s
key values and the greater their commitment to those values, Add to Chrome It''s free
the stronger the culture is. Most organizations have moderate
to strong cultures; that is, there is relatively high agreement
on what’s important, what defines “good” employee behavior,
what it takes to get ahead, and so forth. The stronger a culture
becomes, the more it affects what employees do and the way
Related documents managers plan, organize, lead, and control.38
Also, in organizations with a strong culture, that culture
can substitute for the rules and regulations that formally
guide employees. In essence, strong cultures can create
predictability, orderliness, and consistency without the need
for written documentation. Therefore, the stronger an orga-
nization’s culture, the less managers need to be concerned
with developing formal rules and regulations. Instead, those
guides will be internalized in employees when they accept
the organization’s culture. If, on the other hand, an organi-
zation’s culture is weak—if no dominant shared values are
present—its effect on employee behavior is less clear. CPEN1/ZOB/Southwest Airlines/Cover Images/Newscom

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How Does Culture Affect What Managers Do?

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Say What? Ten percent of executives say they have not Add to ...  Download
identified or communicated an organizational culture.39
Fundamentals
 Flashcards of Management 11th Ed. | Robbins, Coulter, De Cenzo
Houston-based Apache Corp. has become one of the best performers in the independent
oil drilling business because it has fashioned a culture that values risk taking and quick
decision making. Potential hires are judged on how much initiative they’ve shown in get-
 Collections ting projects done at other companies. And company employees are handsomely rewarded
if they meet profit and production goals.40 Because an organization’s culture constrains
what they can and cannot do and how they manage, it’s particularly relevant to managers. Study collections
Such constraints are rarely explicit. They’re not written down. It’s unlikely they’ll even be

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spoken. But they’re there, and all managers quickly learn what to do and not do in their or-
× Management
 Documents ganization. For instance, you won’t find the following values written down, but each comes
from a real organization:

• Look busy even if you’re not.

• If you take risks and fail around here, you’ll pay dearly for it.
• Before you make a decision, run it by your boss so that he or she is never surprised.
 Profile • We make our product only as good as the competition forces us to.

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• What made us successful in the past will make us successful in the future.
• If you want to get to the top here, you have to be a team player.
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The link betweenmath, history,
values such as these economics, chemistry
and managerial behavior and more
is fairly straightforward.
Take, for example, a so-called ready-aim-fire culture. In such an organization, managers
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willStudyLib Extension!
study and analyze proposed projects endlessly before committing to them. However, in
a ready-fire-aim culture, managers take action and then analyze what has been done. Or, say
■Distribute all flashcards
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culture supports the belief into small
that profits sessions
can be increased by cost cutting and
that the company’s best interests are served by achieving slow but steady increases in quar-
■Get inspired with
terly earnings. a daily
In that culture,photo
managers are unlikely to pursue programs that are innovative,
risky, long term, or expansionary. In an organization whose culture conveys a basic distrust
■Importofsets from
employees, Anki,are
managers Quizlet,
more likelyetc
to use an authoritarian leadership style than a demo-
■Add Active Recall to your learningforand
cratic one. Why? The culture establishes get higher
managers appropriategrades!
and expected behavior.
You can see this in action at Winegardner & Hammons, a hotel management firm, where
company leaders have built a “Winning Workplace Culture” with four characteristics: a posi-
tive work environment in which managers are encouraged to make employees feel cared for
and valued; an employee selection process that encourages Add to toChrome
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focus on selecting
the “right” employees; an employee engagement program that’s based on training managers
so they have the right skills, knowledge, and experience to nurture an engaging work environ-
ment; and a strengths-based workplace in which managers continually reinforce employees’
strengths. What has this cultural focus led to? Thirty-four percent lower employee turnover
and 11 percent higher profitability.41 That’s the kind of outcomes that can be achieved if you
Related documents pay attention to your organizational culture and if managers recognize appropriate and ex-
pected behavior in that culture.
As shown in Exhibit 4–5, a manager’s decisions are influenced by the culture in which
he or she operates. An organization’s culture, especially a strong one, influences and con-
strains the way managers plan, organize, lead, and control.

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Exhibit 4–5 Managerial Decisions Affected by Culture

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 Fundamentals of Management 11th Ed. | Robbins, Coulter, De Cenzo
Flashcards
The degree of risk that plans
should contain
How much autonomy
should be designed into
employees’ jobs
Whether plans should be
Culture developed by individuals Whether tasks should be Culture
or teams done by individuals or
 Collections The degree of environmental
in teams
scanning in which The degree to which
management will engage department managers
interact with each other Study collections
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Leading 
× Management
 Documents Controlling
The degree to which Whether to impose external
managers are concerned controls or to allow
with increasing employee employees to control their
job satisfaction own actions
Culture Culture
What leadership styles What criteria should be
 Profile are appropriate emphasized in employee

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performance evaluations
Whether all disagreements—
even constructive ones— What repercussions will occur
should be eliminated from exceeding one’s budget
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Source: Robbins, Stephen P., Coulter, Mary, Management, 13th Ed., © 2016, p. 86. Reprinted and

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electronically reproduced by permission of Pearson Education, Inc., New York, NY.

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What Are Current Issues in
■Get inspired with a daily photo
Organizational Culture?
■Import sets from Anki, Quizlet, etc
■Add Active Recall to your learning
Corporate and get
leaders increasingly are higher
recog- grades!
4-5 Describe current issues in nizing that organizational culture is a criti-
cal business issue, particularly since an
organizational culture. organization’s culture can be a “driver” Add to Chrome It''s free
of employee productivity, engagement, and
retention. What current cultural issues are managers focusing on? We’ve identified five
that we think are important. Let’s take a look.

Creating a Customer-Responsive Culture

Related documents In Chapter 1, we discussed why customers are so important to organizations and managers.
A customer-responsive culture can lead to more satisfied employees and customers, which
in turn can affect performance results. What does a customer-responsive culture look like?
Exhibit 4-6 describes five characteristics of customer-responsive cultures and offers sugges-
tions as to what managers can do to create that type of culture.42

Creating an Innovative Culture

Innovation was also introduced in Chapter 1 as an important issue for organizations and manag-
ers. How important is culture to innovation? More than half of senior executives surveyed said
that the most important driver of innovation for companies was a supportive culture.43 But not
every company has established a culture that fosters innovation. In fact, in a survey of employees,
about half expressed that a culture of management support is very important to generating in-
novative ideas, but only 20 percent believed that management actually provides such support.44

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Exhibit 4–6 Creating a Customer-Responsive Culture

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Fundamentals of Management 11th Ed. | Robbins,Type
Coulter, De Cenzo
Responsive Culture Suggestions for managers
 Flashcards of employee Hire people with personalities and attitudes
consistent with customer service: friendly,
attentive, enthusiastic, patient, good listening
skills
 Collections Type of job environment Design jobs so employees have as much
control as possible to satisfy customer, without
rigid rules and procedures Study collections
Empowerment Give service-contact employees the discretion
Is the category for this document correct?    to make day-to-day decision on job-related × Management
 Documents activites
Role clarity Reduce uncertainty about what service-contact
employees can and cannot do by continual
training on product knowledge, listening, and
other behavioral skills

 Profile Consistent desire to satisfy and Clarify organization’s commitment to doing

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delight customer whatever it takes, even if it’s outside an
employee’s normal job requirements

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Source: Robbins, Stephen P., Coulter, Mary A., Management (Subscription). 14th Ed., © 2018.
Reprinted and electronically reproduced by permission of Pearson Education, Inc., New York, NY.

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What does an innovative culture look like? Here’s one perspective offered by Swedish
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researcher Goran Ekvall:45 reviewing into small sessions
■Get inspired
• Challenge withand a daily photo
involvement: Are employees involved in, motivated by, and committed to
the long-term goals and success of the organization?
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• Freedom: Can employees independently define their work, exercise discretion, and take
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• 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?Add to Chrome It''s free
• Conflict resolution: Do individuals make decisions and resolve issues based on the good
of the organization versus personal interests?
• Debates: Are employees allowed to express opinions and suggest ideas to be considered
and reviewed?

Related documents • Risk taking: Do managers tolerate uncertainty and ambiguity, and are employees re-
warded for taking risks?

Creating a Sustainability Culture

Sustainability was another important management issue introduced in Chapter 1. For many
companies, sustainability is incorporated into the organization’s overall culture. For example,
Johnson & Johnson’s Senior Director of Environment said, “Sustainability is embedded in
our culture. It’s been a part of who we are for more than 65 years, long before the notion of
sustainability became trendy.”46 What can companies do to create a sustainability culture?

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sustainability efforts.
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Get employees—individuals or teams—involved in finding ways to be more sustainable.
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 Flashcards of Management 11th Ed. | Robbins, Coulter, De Cenzo
Create rituals to reinforce the importance of sustainability. For instance, a day/week devoted
to different sustainability practices or beginning every corporate meeting with a sustain-
ability topic.
Use rewards. Tie employee bonuses to meeting sustainability goals. Or, give prizes when an
 Collections employee does something that supports or exemplifies the sustainability culture.

When managers and organizations embed sustainability practices in the culture, the culture Study collections
reinforces those practices. If sustainability is an important cultural value, it needs to be nur-

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tured to grow and become a defining trait.

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Documents    Management
Creating an Ethical Culture
An ethical culture is one in which the shared concept of right and wrong behavior in the
workplace reflects the core values of an organization and influences the ethical decision
making of employees. Ethical cultures champion clear ethical standards. In addition, organi-
 Profile zational leaders model ethical behavior and demand employees also be committed to behav-

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ing ethically. In an ethical culture, employees and managers are open to discussing ethical
issues and are reinforced for their ethical behavior.47 We’ll explore business ethics more fully
in the next chapter. Stay tuned!
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Creating a Learning Culture
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of this chapter StudyLib Extension!
showed us, today’s quick-changing business environ-
ment requires adaptability by managers and employees alike. That means “having employees
who are able to■Distribute
think, relate, learn,all
andflashcards reviewing
adapt continuously.” into small sessions
48 Work cultures geared to con-

stant learning will be of critical importance.

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■Import
What about YOU? sets from Anki, Quizlet, etc
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Will you be one of those employees who learns continuously? Do you want to stand out as
a top candidate and a star employee? Develop your employability skills now and watch it
grades!
happen!

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Creating a learning culture starts with buy-in at the top. Organizational leaders must
absolutely understand what it takes for a learning culture to work and be absolutely commit-
ted to it. In a learning culture, everyone agrees on a shared vision and everyone recognizes
ethical culture
the inherent inter-relationships among the organization’s processes, activities, functions, and A culture in which the shared concept of right
external environment. It also fosters a strong sense of community, caring for each other, and and wrong behavior in the workplace reflects

Related documents trust. A learning culture encourages employees to freely communicate openly, share, experi-
ment, and learn without fear of criticism or punishment.
the organization's core values and influences
employees' ethical decision making

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Fundamentals
 Flashcards of Management CHAPTER
11th Ed. | SUMMARY
Robbins, Coulter, De Cenzo
BY LEARNING OUTCOME
 Collections 4-1 Explain what the external environment is 4-4 Describe how organizational culture affects
and why it’s important. managers.
Study collections
The external environment refers to factors, forces, situations, and Organizational culture affects managers in two ways: through
Is the category for this document correct? events
  
outside the organization that affect its performance. It in- its effect on what employees do and how they behave, and × Management
 Documents cludes economic, demographic, political/legal, sociocultural, tech- through its effect on what managers do as they plan, organize,
nological, and global components. The external environment is lead, and control.
important because it poses constraints and challenges to managers.
4-5 Describe current issues in organizational
4-2 Discuss how the external environment culture.
 Profile affects managers.

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Current issues in organizational culture include creating a
There are three ways that the external environment affects manag-
customer-responsive culture, an innovative culture, a sus-
 Logout ers: its impact on jobs and employment, the amount of environ-
Learn
mental uncertainty, and the nature oflanguages,
tainability culture, an ethical culture, and a learning culture.
math,
history,
stakeholder relationships. economics,
These cultural chemistry
issues are particularly relevant and more
in today’s
business environment as managers focus on ways that an or-
4-3 with free
Define organizational cultureStudyLib
and explain Extension!
ganization’s culture can drive employee productivity, engage-
why it’s important. ment, and retention.
■Distribute all flashcards reviewing into small sessions
Organizational culture is the shared values, principles, traditions,
and ways of doing things ■Get inspired
that influence with
the way a daily photo
organizational
members act. It’s important because of the impact it has on deci-
■Import
sions, behaviors, and actions setsemployees.
of organizational from Anki, Quizlet,
etc
■Add Active Recall to your learning and get higher grades!
DISCUSSION QUESTIONS
4-1 How much impact do managers actually have on an orga-
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4-6 “Businesses are built on relationships.” What do you
nization’s success or failure? think this statement means? What are the implications
4-2 Why do managers need an understanding of what hap- for managing the external environment?
pens outside their organizations? Give examples of how 4-7 Discuss why organizational culture plays a major role in
changes in the external environment can affect their job. business operations and employee behaviors. Explain its
Related documents 4-3 How has the changed economy affected what managers
do? Find two or three examples in current business peri- 4-8
impact on CEOs, managers, and employees.
What steps can encourage organizational culture to
odicals of activities and practices that organizations are evolve over time?
using. Discuss them in light of the changed environment. 4-9 Discuss the impact of a strong culture on organizations
4-4 Why is it important for managers to pay attention to de- and managers.
mographic trends and shifts? 4-10 Pick one of the five current issues in organizational
4-5 Businesses operate in the external environment. Discuss culture and tell in which dimension(s) of organizational
whether managers experience environmental stability in culture (Exhibit 4-4) you think it would most likely be
their business operations. In this context, provide local found. Explain your thinking. Also, explain your opin-
examples of environmental stability and environmental ion as to why that particular issue is important to today’s
uncertainty. organizations.

146

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 Flashcards of Management 11thApplying:
Ed. | Robbins, Coulter, De Cenzo
Getting Ready for the Workplace
 Collections Management Skill Builder | UNDERSTANDING CULTURE
An organization’s culture is a system of shared meaning. When you understand your organization’s culture, you know, for example, Study collections
whether it encourages teamwork, rewards innovation, or stifles initiative. When interviewing for a job, the more accurate you are at

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assessing the culture, the more likely you are to find a good person–organization fit. And once inside an organization, understand-
 
ing the culture allows you to know what behaviors are likely to be rewarded and which are likely to be punished.49 × Management
 Documents
MyLab Management PERSONAL

PERSONAL INVENTORY ASSESSMENT PIA INVENTORY

ASSESSMENT

 Profile Go to [Link]/mylab/management to complete the Personal

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Inventory Assessment related to this chapter.

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Skill Basics out economics, chemistry
who controls certain decisions in anand moreThe
organization.
ability to assess another organization’s culture can be a defi-
Organizational withculturesfree
differ. StudyLib
So do [Link]!
The better nite plus in successfully performing those pursuits.
you’re able to match your personal preferences to an organiza- For the sake of simplicity, we’re going to look at this skill
■Distribute all flashcards reviewing
tion’s culture, the more likely you are to find satisfaction in your from into small sessions
the perspective of a job applicant. We’ll assume you’re
work, the less likely you are to leave, and the greater the prob- interviewing for a job, although these skills are generalizable to
ability that you’ll■Get inspired
receive positive with evaluations.
performance a daily photo many situations. Here’s a list of things you can do to help learn
The ability to read an organization’s culture can be a about an organization’s culture:
■Import
valuable skill. For instance, ifsets
you’refrom
lookingAnki, Quizlet,
for a job, you’ll etc
want to choose an employer whose culture is compatible • Do background work. Get the names of former employ-
■Add Active Recall to your
with your values and in which you’ll feel comfortable. If you
learning and
ees get
from higher
friends grades! and talk with them.
or acquaintances,
can accurately assess a potential employer’s culture before Also talk with members of professional trade associa-
you make your job decision, you may be able to save your- tions to which the organization’s employees belong and
self a lot of grief and reduce the likelihood of making a poor Addwho
executive recruiters to deal
Chrome
with theIt''s free
organization.
choice. Similarly, you’ll undoubtedly have business transac- Look for clues in stories told in annual reports and other
tions with numerous organizations during your professional organizational literature, and check out the organiza-
career, such as selling a product or service, negotiating a tion’s websites for evidence of high turnover or recent
contract, arranging a joint work project, or merely seeking management shake-ups.

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• Observe the physical surroundings. Pay attention to signs, define his or her job success? How would you define
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and arrangements. you think has put them on the fast track? Can you identify
Fundamentals
 Flashcards of Management •11th
Make Ed. | Robbins,
notes about Coulter,
those individuals you De Cenzo
met. Whom did someone in the organization who seems to be considered
a deviant, and how has the organization responded to this
you meet? How did they expect to be addressed?
person? Can you describe a decision that someone made
• How would you characterize the style of the people you that was well received? Can you describe a decision that
met? Are they formal? Casual? Serious? Jovial? Open?
 Collections Reticent about providing information?
didn’t work out well, and what were the consequences for
that decision maker? Could you describe a crisis or critical
• Look at the organization’s human resources manual. Are event that has occurred recently in the organization, and
how did top management respond?
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there formal rules and regulations printed there? If so, how

×
detailed are they? What do they cover?

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Documents   
Ask questions of the people you meet. The most valid
Practicing the Skill
After spending your first three years after college graduation as
Management
and reliable information tends to come from asking the
same questions of many people (to see how closely their a freelance graphic designer, you’re looking at pursuing a job
responses align). Questions that will give you insights as an account executive at a graphic design firm. You feel that
into organizational processes and practices might include: the scope of assignments and potential for technical training
What’s the background of the founders? What’s the back- far exceed what you’d be able to do on your own, and you’re
 Profile ground of current senior managers? What are these man- looking to expand your skills and meet a brand-new set of chal-

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agers’ functional specialties, and were they promoted from
within or hired from outside? How does the organization
lenges. However, you want to make sure you “fit” into the or-
ganization where you’re going to be spending more than eight
hours every workday. Write a brief paper describing how you
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program? Are thereLearn languages,
formal employee math,
training programs history,
would find a economics,
place where you’ll bechemistry
happy and whereand more
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Experiential ■Get inspired with a daily photo
Exercise
■Import sets from Anki, Quizlet, etc
■Add Active Recall to your learning and get higher grades!
Organizational culture is a management topic that a lot of people find very interesting! So you’re going to explore organizational culture using
a series of questions we’ve come up with.

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● Is work supposed to be fun? Is a “good” organizational culture dependent on whether employees have fun at work?
● Lousy cultures have miserable managers. Which came first? The lousy culture or the miserable managers? How would you go about
“fixing” this?
● An organization’s culture should never change. Agree or disagree?
● Organizational culture can “make or break” an organization.
● The right culture with the right values will always produce the best organizational performance. Agree or disagree?
● Management experts say it’s important to “invest” in your organization’s culture. What do you think that means?
Related documents ● How could you tell if you aren’t (or one of your employees isn’t) a good fit for the organization’s culture?
● You can “shape” the culture of your work environment. Agree or disagree? (Hint: You might want to look at the current issues in organi-
zational culture as you talk about this.)

Pick two—only two—of these questions to discuss in your “assigned” group. From your discussion, write down your group’s most impor-
tant insights about organizational culture. Also, what did you learn from your group’s discussion that will help you as you prepare to launch
or pursue your career goals?

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 Flashcards of Management 11thTopic:
Ed. |Organizational
Robbins, Coulter, De Cenzo
culture, organizational values, leader’s influence on culture

Y
ou could say the beginning of the end for Uber founder • After a horrific rape of a 26-year-old passenger by a Uber
 Collections and CEO Travis Kalanick was the February 2017 blog driver in India, the company’s president for the Asia-Pacific
region somehow obtained and shared the confidential medi-
post by former Uber engineer Susan Fowler that outlined
a toxic work culture hostile to women and filled with managers
cal record. Executives proposed an outrageous theory that
the rape might have been a setup by an Indian rival. 54
Study collections
(from top down) willing to turn a blind eye to abuses of employ-
Is the category for this document correct?   
ees, competitors, customers, laws, law enforcement officials...you
• The company, which had a reputation for ignoring local
× Management
 Documents name it.
labor laws and taxi rules, had become a favorite target for
law enforcement officials. So, the company routinely used a
According to the company’s website, Uber started (like many remote system to lock down office equipment to shield files
entrepreneurial businesses) because of an annoying problem.50 from police raids.55
Travis Kalanick and a friend were having trouble hailing a cab on • Key executives, drivers, and employees at rival ride-hailing
companies were secretly spied upon for the express purpose
 Profile a snowy Paris evening in 2008. Their solution (although it didn’t
of acquiring trade secrets.56

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help them with their immediate problem): Wouldn’t it be great to
just tap a button and get a ride. Thus, the Uber app was conceived. • A data breach was hidden for over a year.57
And it totally disrupted an industry! Today, Uber is the world’s • Unsafe cars were knowlingly leased to drivers in
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biggest ride-hailing company,languages,
a global servicemath,
with morehistory,
than Singapore.58
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14,000 employees in more than 600 cities. And it became the most After months of trying to cope with all of the issues and not
with free StudyLib Extension!
highly valued startup in history (to the tune of some $70 billion).51
getting anywhere, some of the firm’s biggest investors eventu-
But the founder’s aggressive style and approach to doing busi- ally forced out Kalanick. It was felt that a change in leader-
■Distribute all flashcards reviewing
ness was fraught with danger, especially as seen in the values that into small
ship would sessions
provide Uber with the opportunity to refocus and
■Get inspired with a daily photo recreate a new culture. The board’s new choice for a CEO
shaped Uber’s culture. 59

Kalanick, a tech entrepreneur who had already sold one was Dara Khosrowshahi, Expedia’s CEO. Khosrowshahi faces
■Import sets from Anki, Quizlet,
startup for almost $19 million, shaped Uber’s mission around aetc
host of challenges, including replenishing Uber’s depleted
■Add Active Recall to your learning
certain foundational beliefs: pursue hypergrowth at all costs;
andranks
executive getand higher grades!
implementing changes mandated by the
win at all costs; be confrontational, but be “principled”; and board to address allegations of ignored complaints of sexism
mottos such as “Always Be Hustlin’ “ and “Toe-Stepping.” 52
and sexual harassment. Khosrowshahi also needs to focus on
And quite interestingly, nowhere was there any indication that Uber’s finances. Internal Add to Chrome
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say that the new CEO free
is 180
collaboration and teamwork were valued. After the Fowler blog degrees different from Kalanick: “humble, a good listener, and a
post, others came forward to describe a “baller” work environ- diplomat.”60 Maybe the ride will be smoother now!
ment where achievements were celebrated by chest bumps and
where males would engage in push-up contests. Although that
Discussion Questions
Related documents type of atmosphere is not criminal, it likely alienated female
employees and other employees who didn’t want to get caught 4-11 What role does a CEO play in an organization’s culture? What
up in that type of behavior.53 role do other leaders/managers play and what role should they
As if these corporate values and culture weren’t enough, play?
there were the decisions and actions by Kalanick and other 4-12 Using Exhibit 4-4, describe Uber’s culture under its founder.
managers. Here are just a few examples: 4-13 Which view of management do you see played out here? The
omnipotent or the symbolic? Explain.
• A dashcam video went viral of Kalanick heatedly arguing
over fares with an Uber driver. 4-14 What advice about organizational culture would you give the
• A New York Times report was released on a secret Uber new CEO?
technology, called Greyball, that the company developed to 4-15 From an ethics perspective, what part of this situation disturbs
identify and deny service to riders who had violated Uber’s you the most? What career advice, as far as ethical behavior,
contractual terms. could you take away from this story?

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| Robbins, Coulter, De Cenzo
Topic: The Power of Presence

 Collections
H
ow do you successfully manage a growing interna- International growth creates many challenges for compa-
tional company? CEO Christian Chabot of Seattle- nies, particularly when they open and staff branch locations
based Tableau believes that being there physically in different countries. Cultural differences, time differences, Study collections
is an important piece in the often-complex puzzle of interna- and just the geographic distance can make it difficult to sus-

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tional management.
  
tain the same management practices at home and abroad.
correct? International growth is nothing new for Tableau. As a How has Chabot managed the quick growth of this interna- × Management
 Documents
leading provider of analytics and business intelligence soft- tional company? One strategy was to spend almost a year
ware solutions, the company, which was founded in 2004, has abroad working in the company’s London office. His time at
more than 35,000 clients in over a dozen countries. Tableau that location helped grow regional sales but also provided the
provides software tools and interactive dashboards that allow CEO with valuable insights to support further international
 Profile users to generate useful business insights through the analy- expansion.

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sis and visualization of data. The company is on the cutting
edge of data-imaging solutions for end-users with products
Chabot reported that the time he spent in London high-
lighted the importance of managing culture and people.
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Prior to the trip, he did not have a true understanding of the
spreadsheets. challenges of international employees working for a U.S.-
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Despite tough competition in the StudyLib Extension!
market for business based company. For instance, he found that many working in
intelligence from software giants such as Microsoft, Tableau international branch offices did not feel like they were taken
has continued to maintain■Distribute all flashcards
its share of the marketplace, and the reviewing intoatsmall
seriously by those the home sessions
office. Geographically remote
company’s value continues to grow, with a 64 percent increase workers can feel disconnected from a global company, par-
■Get inspired with a daily photo
in revenue over last year. Much of the company’s growth is ticularly when they report to management they have never met
■Import
attributed to the company’s sets
international from Anki,
expansion, with an Quizlet,
in person etc
at their headquarters.
86 percent increase in revenue last year from international Chabot’s time working in London was valuable for em-
markets, which now account for a quarter of the company’s ployees in all ofand
■Add Active Recall to your learning get higher
the company’s grades!
locations, as his actions sent the
total revenues. message that he felt that employees outside the headquarters were
While more than half of their current 2,800 employees work important. Although he spent time only in London, the fact that he
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in the company’s Seattle headquarters, Tableau has 14 locations spent a year away from the home office emphasized his belief that
around the world in places such as Shanghai, Singapore, Sydney, locations beyond Seattle are important for the company’s success.
and London. About 400 of the new employees will be hired Chabot’s experience is having such a profound impact on the com-
beyond their Seattle headquarters, and Tableau’s expansion will pany’s success that Tableau is now encouraging other executives to
include opening new international offices. spend time at international offices.61
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4-16 Tableau staffs its international offices primarily with host coun- 4-18 As Tableau executives get ready to spend time in the compa-
try nationals. What are the advantages and disadvantages of
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ny’s international offices, how can they prepare for the cultural
Fundamentals
 Flashcards of Management 11th4-17
Ed. | Robbins, Coulter, De Cenzo
this staffing strategy?
Do you agree with Chabot that the company will benefit if more
differences they will encounter?
4-19 What are some of the challenges Tableau will face as it hires
executives spend time in international offices? Why or why not? 1,000 new employees in one year?

 Collections
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 Documents
CASE APPLICATION # 3
Extreme Openness
 Profile Topic: Organizational culture, openness, pay transparency

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S
ocial media is altering the way employee salaries are say there are drawbacks.65 For instance, how does an organiza-
 Logout Learn languages, math,
negotiated and changed. It used to be that how much
history, economics, chemistry and more
tion reward individuals whose performance is exemplary, even
you were paid at your job was something you never though the performance contributions may not be visible to ev-
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with others Extension!
outside your family and eryone? This situation is quite common in organizations where
maybe your friends. However, a number of websites now al- work is highly collaborative and coworkers’ contributions may
low employees ■Distribute
to anonymously post alltheir
flashcards
annual pay andreviewing
pro- not beinto small
apparent to eachsessions
other. That makes it difficult for everyone
vide an overview of salary ranges for various jobs at a given to agree on how those contributions should be valued. Another
■Get inspired with a daily
organization. Other websites collect pay data from market photo problem is how employees respond when they feel their pay
■Import
surveys and publish it online. sets
62
frommedia-driven
This “social Anki, Quizlet,
sal- etc“fair.” Often, resentment sets in, and dissatisfied/upset em-
isn’t
ary information” has shifted ployees respond by decreasing
■Add
the balance of power in pay Active Recall to your learning
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their work contributions or by
63
discussions. Although em- the Good, the Bad, and the leaving. So, the goal of hoping
ployers often may ask for sal- to motivate and retain employ-
ary histories of job applicants Reality Add to Chrome
ees by sharing It''s free
pay information
and desired salary, now job might have the opposite effect.
applicants and even current employees can be prepared with
at least some salary information. Even if the data may not Discussion Questions
be totally accurate, individuals feel empowered to talk about
Related documents what their expectations are about fair pay.
4-20 Is salary transparency a good thing? Explain your position.

Recent surveys show that Millennials aren’t as appre- 4-21 Using Exhibit 4–4, in which dimension(s) of organiza-
tional culture do you believe pay transparency would fall?
hensive about sharing information about their pay with their
Explain.
coworkers as older workers are. Nearly half say that they
4-22 Will this trend toward salary openness affect how managers
would or do discuss pay with friends. Yet only 36 percent of
manage? If so, how? If not, why not?
Americans overall feel comfortable talking about their com-
4-23 Has social media’s role in pay transparency been a good thing
pensation with others.64 This attitude shift is forcing some em-
or a negative thing? Discuss.
ployers to take a close look at their overall compensation and
4-24 In your “assigned” team, discuss your opinions about sharing
promotion system.
salary information. Work together to identify additional poten-
Although proponents of full pay transparency point out tial drawbacks of full pay transparency. Be prepared to share
the benefits of sharing this information with employees, others these with classmates.

Workplace Education, Work, Workplace HSE workplace

Communication… Community Worksheet Communication Modul… transport campaign
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