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Understanding Management Environment Factors

The document discusses the external environment and its significance for management, highlighting how external factors influence organizational performance and managerial decisions. It contrasts the omnipotent and symbolic views of managers' roles, emphasizing that they are neither entirely powerful nor helpless, but operate within constraints from both external and internal environments. Additionally, it defines organizational culture and its impact on employee behavior and managerial actions.

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6 views25 pages

Understanding Management Environment Factors

The document discusses the external environment and its significance for management, highlighting how external factors influence organizational performance and managerial decisions. It contrasts the omnipotent and symbolic views of managers' roles, emphasizing that they are neither entirely powerful nor helpless, but operate within constraints from both external and internal environments. Additionally, it defines organizational culture and its impact on employee behavior and managerial actions.

Uploaded by

khanhngancao9
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Introduction to Management

CHAPTER 2: THE MANAGEMENT


ENVIRONMENT
Learning Outcomes

• Explain what the external environment is and why it’s important.

• Discuss how the external environment affects managers.

• Define what organizational culture is and why it’s important.

• Describe how organizational culture affects managers.


What Is The External Environment &
Why It’s Important?
External Environment
Factors, forces, situations, and events outside the organization
that affect its performance.
Components of the External Environment
Components of the External Environment
Examples? Exercise in pairs
Exercise in pairs

How Has the Economy Changed?


Exercise in pairs

Managers:
All powerful OR Helpless?
Managers:
All powerful OR Helpless? Exercise in pairs

Omnipotent view: managers are directly responsible


for an organization’s success or failure.
Symbolic view: much of an organization’s success or
failure is due to external forces or factors that are
outside managers’ control.
Managers:
All powerful OR Helpless? Exercise in pairs
Omnipotent view: managers are directly responsible
for an organization’s success or failure.
Symbolic view: much of an organization’s success or
failure is due to external forces or factors that are
outside managers’ control.
In reality, managers are neither all-powerful nor
helpless. But their decisions and actions are
constrained. External constraints come from the
organization’s external environment and internal
constraints come from the organization’s culture.
Exercise in pairs

How ab Demographics?
How ab Demographics?
Exercise in pairs
Age Cohorts
Baby Boomers
Gen X
Gen Y
Post-Millenials

Demography is destiny  the size and


characteristics of a country’s population can
have a significant effect on what it’s able to
achieve
How Does External Environment Affect Managers?

 Jobs and employment

 Assessing environmental uncertainty (The degree of change


and complexity in an organization’s environment )
 Managing stakeholder relationships
How Does External Environment Affect Managers?
Managing Stakeholder Relationships

Stakeholders: any constituencies in an organization’s environment that are


affected by that organization’s decisions and actions.
Exercise in pairs

Ex: Organizational Stakeholders?


Organizational Stakeholders
Organizational Stakeholders

Good stakeholder relationships:

•Can lead to desirable organizational outcomes

•Can affect organizational performance

•Demonstrate doing the “right” thing

© Pearson Education Limited 2015 2-18


What is Organizational Culture?
Organizational Culture
Shared values, principles, traditions, and ways of doing things that influence the
way an organization’s members act.

Perceived

Culture Descriptive

Shared
Google HQ Tour
Dimensions of Culture
How Does Organizational Culture Affect Managers

 Effect on what employees do and how they behave

 Effect on what managers do

Strong cultures: cultures in which the key values are deeply held and widely
shared.
How Does Organizational Culture Affect Managers
Thank you

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