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![Page 1: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/1.jpg)
![Page 2: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/2.jpg)
Management: Arab World Edition Robbins, Coulter, Sidani, Jamali
Chapter 3: Organizational Culture and Environment
Lecturer: AMANI B AL-KAHTANI
![Page 3: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/3.jpg)
3-3 Copyright © 2011 Pearson Education
Learning OutcomesFollow this Learning Outline as you read and study this chapter.
3.1 The Manager: Omnipotent Or Symbolic?
• Contrast the actions of managers according to the omnipotent and symbolic views.
• Identify the two constraints on managerial discretion.
3.2 Organizational Culture
• Identify the seven dimensions of organizational culture.
• Discuss the impact of a strong culture on organizations and managers.
![Page 4: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/4.jpg)
3-4 Copyright © 2011 Pearson Education
Learning Outcomes
3.2 Organizational Culture (cont’d)
• Explain how a culture is formed and maintained.
• Describe how culture affects managers.
3.3 Current Organizational Culture Issues
• Describe the characteristics of an ethical culture, an innovative culture, and a customer-responsive culture.
• Explain why workplace spirituality seems to be an important concern.
• Describe the characteristics of a spiritual organization especially in the Arab context.
![Page 5: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/5.jpg)
3-5 Copyright © 2011 Pearson Education
Learning Outcomes
3.4 The Environment
• List the components of the specific and general environments.
• Explain the two dimensions of environmental uncertainty.
• Identify the most common organizational stakeholders.
• List the four steps in managing external stakeholder relationships.
![Page 6: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/6.jpg)
3-6 Copyright © 2011 Pearson Education
The Manager: Omnipotent Or Symbolic?
1. Contrast the actions of managers according to the omnipotent and symbolic views.
2. Identify the two constraints on managerial discretion.
![Page 7: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/7.jpg)
3-7 Copyright © 2011 Pearson Education
The Manager: Omnipotent or Symbolic?
Omnipotent View of Management
• Managers are directly responsible for an organization’s success or failure.
• The quality of the organization is determined by the quality of its managers.
• 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.
![Page 8: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/8.jpg)
3-8 Copyright © 2011 Pearson Education
The Manager: Omnipotent or Symbolic? (cont’d)
Symbolic View of Management
• Much of an organization’s success or failure is due to external forces outside of managers’ control.
• The ability of managers to affect outcomes is influenced and constrained by external factors.
The economy, customers, governmental policies, competitors, industry conditions, technology, and the actions of previous managers
• Managers symbolize control and influence through their action.
![Page 9: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/9.jpg)
3-9 Copyright © 2011 Pearson Education
Exhibit 3–1 Constraints on Managerial Discretion
![Page 10: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/10.jpg)
3-10 Copyright © 2011 Pearson Education
Organizational Culture
1. Identify the seven dimensions of organizational culture.
2. Discuss the impact of a strong culture on organizations and managers.
3. Explain how a culture is formed and maintained.
4. Describe how culture affects managers.
![Page 11: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/11.jpg)
3-11 Copyright © 2011 Pearson Education
The Organization’s Culture
Organizational Culture
• A system of shared meanings and common beliefs held by organizational members that determines, in a large degree, how they act towards each other.
• “The way we do things around here.”
Values, symbols, rituals, myths, and practices
• Implications:
Culture is a perception.
Culture is shared.
Culture is descriptive.
![Page 12: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/12.jpg)
3-12 Copyright © 2011 Pearson Education
Exhibit 3–2 Dimensions of Organizational Culture
![Page 13: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/13.jpg)
3-13 Copyright © 2011 Pearson Education
Strong Versus Weak Cultures
Strong Cultures
• Are cultures in which key values are deeply and widely held.
• Have a strong influence on organizational members.
Factors Influencing the Strength of Culture
• Size of the organization
• Age of the organization
• Rate of employee turnover
• Strength of the original culture
• Clarity of cultural values and beliefs
![Page 14: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/14.jpg)
3-14 Copyright © 2011 Pearson Education
Exhibit 3–3 Contrasting Organizational Cultures
Dimension Organization A Organization B
Attention to Detail High LowOutcome Orientation Low HighPeople Orientation Low HighTeam Orientation Low HighAggressiveness Low HighStability High LowInnovation and Risk Taking Low High
![Page 15: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/15.jpg)
3-15 Copyright © 2011 Pearson Education
Benefits of a Strong Culture
• Creates a stronger employee commitment to the organization.
• Aids in the recruitment and socialization of new employees.
• Fosters higher organizational performance by instilling and promoting employee initiative.
![Page 16: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/16.jpg)
3-16 Copyright © 2011 Pearson Education
Exhibit 3–4 Strong Versus Weak Organizational Cultures
![Page 17: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/17.jpg)
3-17 Copyright © 2011 Pearson Education
Organizational Culture
Sources of Organizational Culture
• The organization’s founder
Vision and mission
• Past practices of the organization
The way things have been done
• The behavior of top management
Continuation of the Organizational Culture
• Recruitment of like-minded employees who “fit”
• Socialization of new employees to help them adapt to the culture
![Page 18: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/18.jpg)
3-18 Copyright © 2011 Pearson Education
Exhibit 3–5 Establishing and Maintaining Culture
![Page 19: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/19.jpg)
3-19 Copyright © 2011 Pearson Education
How Employees Learn Culture
Stories
• Narratives of significant events or actions of people that convey the spirit of the organization.
Rituals
• Repetitive sequences of activities that express and reinforce the values of the organization.
Material Symbols
• Physical assets distinguishing the organization.
Language
• Acronyms and jargon of terms, phrases, and word meanings specific to an organization.
![Page 20: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/20.jpg)
3-20 Copyright © 2011 Pearson Education
How Culture Affects Managers
Cultural Constraints on Managers
• Whatever managerial actions the organization recognizes as proper or improper on its behalf.
• Whatever organizational activities the organization values and encourages.
• The overall strength or weakness of the organizational culture.
Simple rule for getting ahead in an organization:
Find out what the organization rewards and act accordingly.
![Page 21: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/21.jpg)
3-21 Copyright © 2011 Pearson Education
Exhibit 3–6 Managerial Decisions Affected by Culture
Planning
• The degree of risk that plans should contain.
• Whether plans should be developed by individuals or teams.
• The degree of environmental scanning in which management will engage.
Organizing
• How much autonomy should be designed into employees’ jobs.
• Whether tasks should be done by individuals or in teams.
• The degree to which department managers interact with each other.
![Page 22: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/22.jpg)
3-22 Copyright © 2011 Pearson Education
Exhibit 3–6 Managerial Decisions Affected by Culture (cont’d)
Leading • The degree to which managers are concerned with increasing
employee job satisfaction.• What leadership styles are appropriate.• Whether all disagreements ‒ even constructive ones ‒ should be
eliminated.
Controlling • Whether to impose external controls or to allow employees to control
their own actions.• What criteria should be emphasized in employee performance
evaluations.• What repercussions will occur from exceeding one’s budget.
![Page 23: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/23.jpg)
3-23 Copyright © 2011 Pearson Education
Current Organizational Culture Issues
1. Describe the characteristics of an ethical culture, an innovative culture, and a customer-responsive culture.
2. Explain why workplace spirituality seems to be an important concern.
3. Describe the characteristics of a spiritual organization especially in the Arab context.
![Page 24: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/24.jpg)
3-24 Copyright © 2011 Pearson Education
Organization Culture Issues
Creating an Ethical Culture
• High in risk tolerance
• Low to moderate aggressiveness
• Focus on means as well as outcomes
![Page 25: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/25.jpg)
3-25 Copyright © 2011 Pearson Education
Organization Culture Issues (cont’d)
Creating an Innovative Culture
• Challenge and involvement
• Freedom
• Trust and openness
• Idea time
• Playfulness/humor
• Conflict resolution
• Debates
• Risk-taking
![Page 26: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/26.jpg)
3-26 Copyright © 2011 Pearson Education
Exhibit 3–7 Creating an Ethical Culture
• Be a visible role model.
• Communicate ethical expectations.
• Provide ethics training.
• Visibly reward ethical acts and punish unethical ones.
• Provide protective mechanisms so employees can discuss ethical dilemmas and report unethical behavior without fear.
![Page 27: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/27.jpg)
3-27 Copyright © 2011 Pearson Education
Organization Culture Issues (cont’d)
Creating a Customer-Responsive Culture
• Hiring the right type of employees (those with a strong interest in serving customers).
• Having few rigid rules, procedures, and regulations.
• Using widespread empowerment of employees.
• Having good listening skills in relating to customers’ messages.
• Providing role clarity to employees to reduce ambiguity and conflict and increase job satisfaction.
• Having conscientious, caring employees willing to take initiative.
![Page 28: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/28.jpg)
3-28 Copyright © 2011 Pearson Education
Exhibit 3–8 Creating a Customer-Responsive Culture
![Page 29: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/29.jpg)
3-29 Copyright © 2011 Pearson Education
Spirituality and Organizational Culture
Workplace Spirituality
• The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community.
![Page 30: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/30.jpg)
3-30 Copyright © 2011 Pearson Education
Spirituality and Organizational Culture (cont’d)
Characteristics of a Spiritual Organization
• Strong sense of purpose
• Focus on individual development
• Trust and openness
• Employee empowerment
• Toleration of employees’ expression
![Page 31: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/31.jpg)
3-31 Copyright © 2011 Pearson Education
Benefits of Spirituality
• Improved employee productivity
• Reduction of employee turnover
• Stronger organizational performance
• Increased creativity
• Increased employee satisfaction
• Increased team performance
![Page 32: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/32.jpg)
3-32 Copyright © 2011 Pearson Education
Benefits of Spirituality (cont’d)
Spirituality in the Arab Workplace
• The significance of spirituality in the workplace takes a special meaning in the Arab world where the level of religiosity is higher compared to many Western societies.
• The separation between religion and public life ‒ which is dominant in Western societies – is less prevalent within the Arab context.
![Page 33: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/33.jpg)
3-33 Copyright © 2011 Pearson Education
Benefits of Spirituality (cont’d)
Spirituality in the Arab Workplace
• The Islamic Work Ethic emphasizes the value and quality of work and invites reliance on one’s self and displaying positive behavior in the workplace.
• But spirituality is not restricted to one religion. Many Arab countries are religiously diverse (e.g. Lebanon and Egypt).
![Page 34: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/34.jpg)
3-34 Copyright © 2011 Pearson Education
Benefits of Spirituality (cont’d)
Spirituality in the Arab Workplace
• Spirituality does not mean bringing religion to the workplace. It involves helping employees find meaning in their work.
• A spiritual organization allows some space for employees to exercise their spirituality in a way they see fit within the constraints of organizational objectives and controls.
![Page 35: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/35.jpg)
3-35 Copyright © 2011 Pearson Education
The Environment
1. List the components of the specific and general environments.
2. Explain the two dimensions of environmental uncertainty.
3. Identify the most common organizational stakeholders.
4. List the four steps in managing external stakeholder relationships.
![Page 36: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/36.jpg)
3-36 Copyright © 2011 Pearson Education
Defining the External Environment
External Environment
• Those factors and forces outside the organization that affect the organization’s performance.
Components of the External Environment
• Specific environment: external forces that have a direct and immediate impact on the organization.
• General environment: broad economic, socio-cultural, political/legal, demographic, technological, and global conditions that may affect the organization.
![Page 37: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/37.jpg)
3-37 Copyright © 2011 Pearson Education
Exhibit 3–9 The External Environment
![Page 38: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/38.jpg)
3-38 Copyright © 2011 Pearson Education
Specific Environment
- An organization exists to meet the needs of customers who use its output.
- Customers represent potential uncertainty to an organization because their tastes can change or they can become dissatisfied with the organization’s products or service.
Customers
![Page 39: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/39.jpg)
3-39 Copyright © 2011 Pearson Education
Specific Environment (cont’d)
- Suppliers ensure a steady flow of needed inputs (supplies).
- Limited or delayed in delivery can constrain managers’ decisions and actions.
- Suppliers also provide financial and labor inputs.
Suppliers
![Page 40: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/40.jpg)
3-40 Copyright © 2011 Pearson Education
Specific Environment (cont’d)
- All organizations ‒ profit and not-for-profit ‒ have competitors.
- Managers cannot afford to ignore the competition.Competitors
![Page 41: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/41.jpg)
3-41 Copyright © 2011 Pearson Education
Specific Environment (cont’d)
- Managers must recognize special-interest groups that attempt to influence the actions of organizations.
Public Pressure Groups
![Page 42: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/42.jpg)
3-42 Copyright © 2011 Pearson Education
General environment
Interest rates, inflation, changes in disposable income, stock market fluctuations, and the stage of the general business cycle are some economic factors that can affect management practices in an organization.
Economic
![Page 43: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/43.jpg)
3-43 Copyright © 2011 Pearson Education
Exhibit 3–10 Economic Performance Indicators in the Arab World
![Page 44: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/44.jpg)
3-44 Copyright © 2011 Pearson Education
General environment (cont’d)
Local laws, as well as global and other country laws and regulations, influence what organizations can and cannot do.
They reduce managerial discretion by limiting available choices. (Example: legal implications of dismissing an employee)
Impact of stability on organizations.
Political/Legal
![Page 45: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/45.jpg)
3-45 Copyright © 2011 Pearson Education
Managers must adapt their practices to the changing expectations of the society in which they operate. As these values, customs, and tastes change, managers must also change.
Example: As workers increasingly seek a work–life balance, organizations offer solutions.
Sociocultural
General environment (cont’d)
![Page 46: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/46.jpg)
3-46 Copyright © 2011 Pearson Education
Demographic conditions encompass trends in population characteristics such as gender, age, level of education, geographic location, income, and family composition.
Changes in these characteristics may constrain how managers plan, organize, lead, and control.
Demographics
General environment (cont’d)
![Page 47: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/47.jpg)
3-47 Copyright © 2011 Pearson Education
Exhibit 3–11 Demographic Trends
![Page 48: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/48.jpg)
3-48 Copyright © 2011 Pearson Education
The most rapid changes have occurred in technology.
Companies that capitalize on technology, such as General Electric, eBay, and Google, prosper.
Technological
General environment (cont’d)
![Page 49: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/49.jpg)
3-49 Copyright © 2011 Pearson Education
Exhibit 3–12 Technology Diffusion
![Page 50: Management: Arab World Edition Robbins, Coulter, Sidani, Jamali Chapter 3: Organizational Culture and Environment Lecturer: AMANI B AL-KAHTANI.](https://reader037.fdocuments.net/reader037/viewer/2022102519/56649d875503460f94a6c0e7/html5/thumbnails/50.jpg)
3-50 Copyright © 2011 Pearson Education
Global
Globalization is one of the major factors affecting managers and organizations.
Managers are challenged by an increasing number of global competitors.
We will cover this in chapter 4.
General environment (cont’d)
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How the Environment Affects Managers
Environmental Uncertainty
• The extent to which managers have knowledge of and are able to predict change which their organization’s external environment is affected by:
Complexity of the environment: the number of components in an organization’s external environment.
Degree of change in environmental components: how dynamic or stable the external environment is.
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Exhibit 3–13 Environmental Uncertainty Matrix
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Stakeholder Relationships
Stakeholders
• Any constituencies in the organization’s environment that are affected by the organization’s decisions and actions
Why Manage Stakeholder Relationships?
• It can lead to improved organizational performance.
• It’s the “right” thing to do, given the interdependence of the organization and its external stakeholders.
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Managing Stakeholder Relationships
1. Identify the organization’s external stakeholders.
2. Determine the particular interests and concerns of the external stakeholders.
3. Decide how critical each external stakeholder is to the organization.
4. Determine how to manage each individual external stakeholder relationship.
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Exhibit 3–14 Organizational Stakeholders
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Terms to Know
omnipotent view of management
symbolic view of management
organizational culture
strong cultures
socialization
workplace spirituality
external environment
specific environment
general environment
environmental uncertainty
environmental complexity
stakeholders
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