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Organizational culture and environment


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Management By Asghar Ali Narejo

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Organizational culture and environment

  1. 1. Asghar Ali Narejo<br />Contact: 0300-3141046<br />E-mail:<br />1<br />Principles of Management<br />
  2. 2. Organizational Culture and Environment:The Constraints<br />
  3. 3. The Manager: Omnipotent or Symbolic?<br /><ul><li>Omnipotent View of Management
  4. 4. Managers are directly responsible for an organization’s success or failure.
  5. 5. The quality of the organization is determined by the quality of its managers.
  6. 6. Managers are held accountable for an organization’s performance yet it is difficult to attribute good or poor performance directly to their influence on the organization.</li></li></ul><li>The Manager: Omnipotent or Symbolic?<br />Symbolic View of Management<br /><ul><li>Much of an organization’s success or failure is due to external forces outside of managers’ control.
  7. 7. The ability of managers to affect outcomes is influenced and constrained by external factors.
  8. 8. The economy, customers, governmental policies, competitors, industry conditions, technology, and the actions of previous managers
  9. 9. Managers symbolize control and influence through their action.</li></li></ul><li>Exhibit 1.1 Parameters of Managerial Discretion<br />
  10. 10. The Organization’s Culture<br />Organizational Culture<br /><ul><li>A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other.
  11. 11. “The way we do things around here.”
  12. 12. Values, symbols, rituals, myths, and practices
  13. 13. Implications:
  14. 14. Culture is a perception.
  15. 15. Culture is shared.
  16. 16. Culture is descriptive.</li></li></ul><li>Exhibit 1.2 Dimensions of Organizational Culture<br />
  17. 17. Strong versus Weak Cultures<br /><ul><li>Strong Cultures
  18. 18. Are cultures in which key values are deeply held and widely held.
  19. 19. Have a strong influence on organizational members.
  20. 20. Factors Influencing the Strength of Culture
  21. 21. Size of the organization
  22. 22. Age of the organization
  23. 23. Rate of employee turnover
  24. 24. Strength of the original culture
  25. 25. Clarity of cultural values and beliefs</li></li></ul><li>Benefits of a Strong Culture<br /><ul><li>Creates a stronger employee commitment to the organization.
  26. 26. Aids in the recruitment and socialization of new employees.
  27. 27. Fosters higher organizational performance by instilling and promoting employee initiative.</li></li></ul><li>Organizational Culture<br />Sources of Organizational Culture<br /><ul><li>The organization’s founder</li></ul>Vision and mission<br /><ul><li>Past practices of the organization</li></ul>The way things have been done<br /><ul><li>The behavior of top management </li></ul>Continuation of the Organizational Culture<br /><ul><li>Recruitment of like-minded employees who “fit”
  28. 28. Socialization of new employees to help them adapt to the culture</li></li></ul><li>Exhibit 1.3 Strong versus Weak Organizational Cultures<br />
  29. 29. How Employees Learn Culture<br />Stories<br /><ul><li>Narratives of significant events or actions of people that convey the spirit of the organization</li></ul>Rituals<br /><ul><li>Repetitive sequences of activities that express and reinforce the values of the organization</li></ul>Material Symbols<br /><ul><li>Physical assets distinguishing the organization</li></ul>Language<br /><ul><li>Acronyms and jargon of terms, phrases, and word meanings specific to an organization</li></li></ul><li>How Culture Affects Managers<br />Cultural Constraints on Managers<br /><ul><li>Whatever managerial actions the organization recognizes as proper or improper on its behalf
  30. 30. Whatever organizational activities the organization values and encourages
  31. 31. The overall strength or weakness of the organizational culture
  32. 32. Simple rule for getting ahead in an organization:
  33. 33. Find out what the organization rewards and do those things.</li></li></ul><li>Exhibit 1.4 How an Organization’s Culture Is Established and Maintained<br />
  34. 34. Exhibit 1.5 Managerial Decisions Affected by Culture<br /><ul><li>Planning
  35. 35. The degree of risk that plans should contain
  36. 36. Whether plans should be developed by individuals or teams
  37. 37. The degree of environmental scanning in which management will engage
  38. 38. Organizing
  39. 39. How much autonomy should be designed into employees’ jobs
  40. 40. Whether tasks should be done by individuals or in teams
  41. 41. The degree to which department managers interact with each other</li></li></ul><li>Exhibit 1.5 Managerial Decisions Affected by Culture (cont’d)<br /><ul><li>Leading
  42. 42. The degree to which managers are concerned with increasing employee job satisfaction
  43. 43. What leadership styles are appropriate
  44. 44. Whether all disagreements—even constructive ones—should be eliminated
  45. 45. Controlling
  46. 46. Whether to impose external controls or to allow employees to control their own actions
  47. 47. What criteria should be emphasized in employee performance evaluations
  48. 48. What repercussions will occur from exceeding one’s budget</li></li></ul><li>Organization Culture Issues<br /><ul><li>Creating an Ethical </li></ul>Culture<br /><ul><li>High in risk tolerance
  49. 49. Low to moderate aggressiveness
  50. 50. Focus on means as well as outcomes
  51. 51. Creating an Innovative Culture
  52. 52. Challenge and involvement
  53. 53. Freedom
  54. 54. Trust and openness
  55. 55. Idea time
  56. 56. Playfulness/humor
  57. 57. Conflict resolution
  58. 58. Debates
  59. 59. Risk-taking</li></li></ul><li>Exhibit 1.6 Suggestions for Managers: Creating a More Ethical Culture<br /><ul><li>Be a visible role model.
  60. 60. Communicate ethical expectations.
  61. 61. Provide ethics training.
  62. 62. Visibly reward ethical acts and punish unethical ones.
  63. 63. Provide protective mechanisms so employees can discuss ethical dilemmas and report unethical behavior without fear.</li></li></ul><li>Organization Culture Issues (cont’d)<br />Creating a Customer-Responsive Culture<br /><ul><li>Hiring the right type of employees (ones with a strong interest in serving customers)
  64. 64. Having few rigid rules, procedures, and regulations
  65. 65. Using widespread empowerment of employees
  66. 66. Having good listening skills in relating to customers’ messages
  67. 67. Providing role clarity to employees to reduce ambiguity and conflict and increase job satisfaction
  68. 68. Having conscientious, caring employees willing to take initiative</li></li></ul><li>Exhibit 1.7 Suggestions for Managers: Creating a More Customer-Responsive Culture<br /><ul><li>Hire service-contact people with the personality and attitudes consistent with customer service—friendliness, enthusiasm, attentiveness, patience, concern about others, and listening skills.
  69. 69. Train customer service people continuously by focusing on improving product knowledge, active listening, showing patience, and displaying emotions.
  70. 70. Socialize new service-contact people to the organization’s goals and values.
  71. 71. Design customer-service jobs so that employees have as much control as necessary to satisfy customers.
  72. 72. Empower service-contact employees with the discretion to make day-to-day decisions on job-related activities.
  73. 73. As the leader, convey a customer-focused vision and demonstrate through decisions and actions the commitment to customers.</li></li></ul><li>Spirituality and Organizational Culture<br />Workplace Spirituality<br /><ul><li>The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community.</li></ul>Characteristics of a Spiritual Organization<br /><ul><li>Strong sense of purpose
  74. 74. Focus on individual development
  75. 75. Trust and openness
  76. 76. Employee empowerment
  77. 77. Toleration of employees’ expression</li></li></ul><li>Benefits of Spirituality<br /><ul><li>Improved employee productivity
  78. 78. Reduction of employee turnover
  79. 79. Stronger organizational performance
  80. 80. Increased creativity
  81. 81. Increased employee satisfaction
  82. 82. Increased team performance
  83. 83. Increased organizational performance</li></li></ul><li>Corporate Culture Adaptability<br />Adaptive Culture<br />Unadaptive Culture<br />Managers tend to behave somewhat insularly, politically, and bureaucratically. As a result, they do not change their strategies quickly to adjust to or take advantage of changes in their business environments.<br />Visible Behavior<br />Managers pay close attention to all their constituencies, especially customers, and initiate change when needed to serve their legitimate interests, even if it entails taking some risks.<br />Expressed Values<br />Managers care deeply about customers, stockholders, and employees. They strongly value people and processes that can create useful change (e.g., leadership initiatives up and down the management hierarchy).<br />Managers care mainly about themselves, their immediate work group, or some product (or technology) associated with that work group. They value the orderly and risk-reducing management process much more highly than leadership initiatives.<br />
  84. 84. Organizationalenvironment<br />
  85. 85. General <br />Environment<br />Technological<br />Customers<br />Socio-Cultural<br />Employees<br />Culture<br />Internal <br />Environment<br />Competitors<br />LaborMarket<br />International<br />Management<br />Economic<br />Suppliers<br />Task <br />Environment<br />Legal/Political<br />
  86. 86. Defining the External Environment<br />External Environment<br /><ul><li>Those factors and forces outside the organization that affect the organization’s performance. </li></ul>Components of the External Environment<br /><ul><li>Specific environment: external forces that have a direct and immediate impact on the organization.
  87. 87. General environment: broad economic, socio-cultural, political/legal, demographic, technological, and global conditions that may affect the organization.</li></li></ul><li>Exhibit 1.8 The External Environment<br />
  88. 88. How the Environment Affects Managers<br />Environmental Uncertainty<br /><ul><li>The extent to which managers have knowledge of and are able to predict change their organization’s external environment is affected by:</li></ul>Complexity of the environment: the number of components in an organization’s external environment.<br />Degree of change in environmental components: how dynamic or stable the external environment is.<br />
  89. 89. Exhibit 1.9 Environmental Uncertainty Matrix<br />
  90. 90. Stakeholder Relationships<br />Stakeholders<br /><ul><li>Any constituencies in the organization’s environment that are affected by the organization’s decisions and actions</li></ul>Why Manage Stakeholder Relationships?<br /><ul><li>It can lead to improved organizational performance.
  91. 91. It’s the “right” thing to do given the interdependence of the organization and its external stakeholders.</li></li></ul><li>Exhibit 1.10 Organizational Stakeholders<br />
  92. 92. Keeping Smile……………<br />Asghar Ali Narejo<br />Contact: 0300-3141046<br />E-mail:<br />32<br />