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- 1. Chapter 3 Environment and organisational culture: The constraints
- 2. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e2 Learning Outline Contrast actions of managers according to omnipotent and symbolic views. Describe four components in an organisation’s specific environment. Describe the six factors in an organisation’s general environment. Discuss the constraints and challenges facing managers in today’s external environment. Identify some common stakeholders, and explain the steps in managing stakeholder relationships. Discuss the characteristics and impact of organisational culture. Explain the sources of an organisation’s culture, and describe how it is transmitted to employees. Describe some current issues in organisational culture.
- 3. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e3 Views on Management Managers are directly accountable for the success or failure of an organisation (the omnipotent view). Managers have only a limited effect on substantive organisational outcomes because of the large number of factors outside management’s control (the symbolic view). Reality suggests a synthesis: managers are neither helpless nor ALL powerful.
- 4. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e4 Managing Organisations Internal Environment • organisational culture made up of ‘shared meanings’, i.e. stories, rituals, symbols and language External Environment • general and specific environment
- 5. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e5 Environment – specific and general Specific • factors that directly impact achievement of the organisation’s goals - suppliers, customers, competitors, government agencies and public pressure groups. General • broad factors (not within the control of the organisation) such as political conditions, economic factors, sociocultural influences, technological factors, legal and global issues that indirectly impact the organisation.
- 6. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e6 Monash University: Specific Customers • students, on campus • students, off campus • businesses (consultation, short courses) Suppliers • educational services, i.e. lecturers and tutors • bookstore, paper, utilities Competitors • TAFE, other universities Pressure groups/govt agencies • green lobby group; local council; bicycle lobby group
- 7. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e7 Legal Global Socio-cultural PoliticalP E S T LG Monash University - general Strong $A dollar makes it more expensive for overseas students to come to Australia to study – drop in enrolments possible Economic Universities using tools of popular internet culture to advance more flexible models for learning. Technological
- 8. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e8 SME example (bin hire) -specific Customers • private home owners • businesses Suppliers • automotive • resources, i.e. steel, finance • other bin suppliers, i.e. plastic Competitors • larger bin companies, i.e. Kartaway Pressure groups/government agencies • recycling
- 9. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e9 P E S T LG SME example – general Legal Global Socio-cultural Political Economic Technological Increased pressure on businesses to be green and to reduce carbon emissions People renovating rather than buying new homes, less discretionary spending, so more home-based activities such as home improvements and less travel Steel prices globally increasing by mid-year, so cost to make bins increasing
- 10. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e10 1. Environmental uncertainty • degree of change/degree of complexity Impact of external environment
- 11. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e11 Impact of external environment 2. Stakeholder relationships
- 12. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e12 Impact of external environment Managing stakeholder relationships • who are our stakeholders? • what are their main interests/concerns? • how critical is this relationship to the organisation’s decisions? • which approach should be used to manage this relationship?
- 13. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e13 Organisational culture is… A Perception Shared and descriptive
- 14. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e14 Figure 3.6Figure 3.6 Dimensions of organisational culture
- 15. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e15 Dimensions of organisational culture (OPASITA) Composite Picture of the organisation’s culture O = Outcome orientation P = People orientation A = Aggressiveness S = Stability I = Innovation and risk taking T = Teams orientation A = Attention to detail
- 16. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e16 Strong versus weak culture
- 17. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e17 Sources of organisational culture • The organisation’s founder • vision and mission • Past practices of the organisation • the way things have been done • Behaviour of top management The Devil Wears Prada
- 18. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e18 How an organisation’s culture continues Recruitment of employees who fit: • socially-based criteria • Such as “personal chemistry” or values • Achievement, concern for others, honesty and fairness • already-formed characteristics • (Past experience, intelligence, knowledge, skills and abilities) • non-job related criteria • Such as attractiveness or interpersonal skills (Chatman, 1991)
- 19. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e19 How an organisation’s culture continues Socialisation of new employees to help them adapt to the culture • reduce their psychological distress • learn the values which guide expected behaviours • orient themselves to the achievement of desirable organisational ends Language, ritual, drama, stories, myths and symbolic construction are important tools in the management of meaning
- 20. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e20 How an organisation’s culture continues
- 21. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e21 How employees learn culture Stories • Significant events or people. • John Ilhan began his career in his early 20s at Strathfield Car Radios and as a young man soon rose up to become one of that company’s top national salesmen. He had a simple yet effective business philosophy that earned him immediate and ongoing success — give the customer great service and they will be loyal in return.
- 22. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e22 How employees learn culture Rituals • Repetitive activities that reinforce the organisation’s values.
- 23. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e23 How employees learn culture Material Symbols • Symbols that say something about the organisation, ie. office space, dress, cars.
- 24. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e24 How employees learn culture Language • Terms and phrases unique to the organisation, or the workplace. “Bending the plate and changing the blanket” “Ducks on the pond”
- 25. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e25 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 behaviour without fear. Current issues concerning culture
- 26. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e26 Current issues concerning culture Creating an innovative culture • challenge and involvement • freedom • trust and openness • idea time • playfulness/humour • conflict resolution • debates • risk taking
- 27. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e27 Current issues concerning culture Creating a customer responsive culture • friendly customer oriented employees • few rules and regulations • empowered employees • good listening skills • role clarity
- 28. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e28 Creating an organisational culture that embraces sustainability • deeply ingrained values • strategic positioning • top management support • systematic alignment • metrics • holistic integration • stakeholder engagement Current issues concerning culture
- 29. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e29 Current issues concerning culture Spirituality and organisational culture • strong sense of purpose, individual development, employee empowerment • finding meaning and purpose at work, and living out one’s set of deeply held personal beliefs – The meaning of work – What do you intend to accomplish or realise through work? – Work as worth: money or meaning? Purpose
- 30. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e30 Critical thinking question: Is there a difference between an organisation’s espoused values (the ones it says are important) and its actual values (those that guide behaviour on a day to day basis in the organisation)?
- 31. Replace with slice from book cover – height = 1cm Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e31 Critical thinking question: Does spirituality have a place in the organisation when a manager is tackling an issue such as sustainability?
- 32. Replace with slice from book cover – height = 1cm 32 Copyright ©2012 Pearson Australia (a division of Pearson Australia Group Pty Ltd) – 9781442538603/Robbins et all/Management/6e
Hinweis der Redaktion
- The general environment The general environment consists of the economic, political, social, and technological conditions that can affect the management of organisations. The extent of influence of the general environment is less direct than that of the specific environment but also difficult to predict. Some general environmental factors, such as a severe economic recession, can lead to far-reaching effects on the organisation.
- Notes for lecturers: Lecturers can substitute their own institutions here The specific environment refers to those environmental conditions that have a direct impact on organisations. Customers purchase the organisation’s goods and/or services. New products and services; new marketing techniques and opportunities; and better educated and informed – and thus more discriminating customers – have all added uncertainty to the organisation/customer relationship. Suppliers are organisations or individuals who supply resources such as capital, people, materials, and information. It used to be thought that an organisation should not depend on a sole source for any particular resource. To do so renders the organisation vulnerable to the consequences of any difficulties, such as a strike, experienced by that supplier. However, a derivative of global competition is the realisation that, by limiting suppliers, an organisation can help maintain a competitive relationship between suppliers, and enjoy the consequential cost reductions. Contracts that provide the organisation with some controls over the supplier can be negotiated. These controls may involve quality of materials, or perhaps flexibility of supply. Competitors are other organisations or individuals who compete with it for resources. One obvious resource is consumer dollars. For example, Nike, Reebok, and Adidas are competitors and as markets are finite (there are only so many consumers who purchase sports shoes), managers expend varying amounts of effort to increase and/or maintain their organisation’s market share. There is also competition between substitute products. For example, one current fashion is to wear sports shoes as casual wear – the consequence of successful marketing – thus sports shoe manufacturers have taken market share from other casual shoe manufacturers. Pressure groups are those within the environment that can influence the organisation’s policies and practices, formally through the legislative system, or informally by bringing pressure to bear through the activities of special interest groups. For example, in Australia, the power of the unions to influence organisation’s work and labour practices fluctuates in response to a number of factors. These are largely influenced by the persuasion of the governments in power, and the economic climate. Other pressure groups such as Greenpeace, or the Australian Conservation Foundation cannot exercise any legally based influence on organisations, but nevertheless, they have a considerable impact. Their power lies in their ability to tug on the collective conscience, using the media to communicate and influence the general public.
- Economic conditions Interest rates, inflation, changes in disposable income, stock market prices, and general business cycles all contribute to the general economic conditions. Recessions in one large industry can spread out to others as workers are laid off and consumers have less income to spend purchasing the products of other organisations. Political conditions Political conditions include both the general stability of the countries in which the organisation has operations and the attitudes that governments in those countries hold toward the role of business in their society. Social conditions Many countries often have different social and cultural rules of conduct. Management must adapt its practices to the changing expectations of the society in which in operates. Areas of managerial decisions affected by changing social conditions includes not only the makeup of the products and services offered by the organisation but its internal policies as well. For example the changing demographics of the workforce are requiring organisations to recognise the needs of women and minority employees by adopting innovative management practices to motivate and retain these important employee groups. Technological conditions Innovations in technology are the most rapidly changing factor in the general environment. Technology dependent organisations can become obsolete almost overnight as innovations replace whole industries.
- Notes for lecturers: Lecturers can substitute a business of their own choice here Local bin business The specific environment refers to those environmental conditions that have a direct impact on organisations. Customers purchase the organisation’s goods and/or services. New products and services; new marketing techniques and opportunities; and better educated and informed – and thus more discriminating customers – have all added uncertainty to the organisation/customer relationship. Suppliers are organisations or individuals who supply resources such as capital, people, materials, and information. It used to be thought that an organisation should not depend on a sole source for any particular resource. To do so renders the organisation vulnerable to the consequences of any difficulties, such as a strike, experienced by that supplier. However, a derivative of global competition is the realisation that, by limiting suppliers, an organisation can help maintain a competitive relationship between suppliers, and enjoy the consequential cost reductions. Contracts that provide the organisation with some controls over the supplier can be negotiated. These controls may involve quality of materials, or perhaps flexibility of supply. Competitors are other organisations or individuals who compete with it for resources. One obvious resource is consumer dollars. For example, Nike, Reebok, and Adidas are competitors and as markets are finite (there are only so many consumers who purchase sports shoes), managers expend varying amounts of effort to increase and/or maintain their organisation’s market share. There is also competition between substitute products. For example, one current fashion is to wear sports shoes as casual wear – the consequence of successful marketing – thus sports shoe manufacturers have taken market share from other casual shoe manufacturers. Pressure groups are those within the environment that can influence the organisation’s policies and practices, formally through the legislative system, or informally by bringing pressure to bear through the activities of special interest groups. For example, in Australia, the power of the unions to influence organisation’s work and labour practices fluctuates in response to a number of factors. These are largely influenced by the persuasion of the governments in power, and the economic climate. Other pressure groups such as Greenpeace, or the Australian Conservation Foundation cannot exercise any legally based influence on organisations, but nevertheless, they have a considerable impact. Their power lies in their ability to tug on the collective conscience, using the media to communicate and influence the general public.
- Local bin business Economic conditions Interest rates, inflation, changes in disposable income, stock market prices, and general business cycles all contribute to the general economic conditions. Recessions in one large industry can spread out to others as workers are laid off and consumers have less income to spend purchasing the products of other organisations. Political conditions Political conditions include both the general stability of the countries in which the organisation has operations and the attitudes that governments in those countries hold toward the role of business in their society. Social conditions Many countries often have different social and cultural rules of conduct. Management must adapt its practices to the changing expectations of the society in which in operates. Areas of managerial decisions affected by changing social conditions includes not only the makeup of the products and services offered by the organisation but its internal policies as well. For example the changing demographics of the workforce are requiring organisations to recognise the needs of women and minority employees by adopting innovative management practices to motivate and retain these important employee groups. Technological conditions Innovations in technology are the most rapidly changing factor in the general environment. Technology dependent organisations can become obsolete almost overnight as innovations replace whole industries.
- Figure 3.4 from text
- There is not one accepted definition of what organisational culture means. At its broadest, an organisation’s culture can be described as: ‘the way we do things around here’ “Culture refers to the deep structure of organisations that is rooted in values, beliefs, and assumptions held by organisational members. Meaning is established through socialisation to a variety of identity groups that converge in the workplace”, Denison (1996: 624).
- Figure 3.5 from text Remove one of the 7 dimensions and describe 3 ways its absence would alter the culture as a whole.
- Our definition of organisational culture says it is a system of shared meaning with an organisation that determines in large degree, how employees act. Research indicates that there are 7 dimensions that, in aggregate, capture the essence of an organisation and differentiate it from other organisations: The degree to which ……….. O = managers focus on results/outcomes rather than how these outcomes are achieved P = managers take into account the effect of outcomes on people in the organisation A = people are aggressive and competitive versus easygoing and cooperative S = organisational activities emphasis maintaining the status quo as opposed to growth I = employees are encouraged to be innovative and to take risks T = work activities are organised around teams rather than individuals A = employees are expected to exhibit precision, analysis, and attention to detail
- URL - http://au.youtube.com/watch?v=zicgut4gpwU Suggestion: This video clip clearly demonstrates the management behaviour required to get ahead in this organisation.
- Job seekers are attracted to organisations where they believe their personal characteristics are aligned with organisational attributes (Cable and Judge, 1994, Chatman, 1989, 1991, Diener, Larson and Emmons, 1984, Judge and Bretz, 1992, Pervin, 1989, Schneider, 1987, Tom, 1971 in O’Reilly, Chatman and Caldwell, 1991). Judge and Bretz (1992) sampled 67 professional degree students to examine the influence of organisational work values on job choice in the context of job attributes (shown to affect the organisation selection decision making process).
- Use of language, ritual, drama, stories, myths and symbolic construction are important tools in the management of meaning. Reduce their psychological distress by becoming familiar with rules, roles and norms of the group (Nelson and Quick, 1991). Learn the values which guide expected behaviours Orient themselves to the achievement of desirable organisational ends
- Use of language, ritual, drama, stories, myths and symbolic construction are important tools in the management of meaning. Reduce their psychological distress by becoming familiar with rules, roles and norms of the group (Nelson and Quick, 1991). Learn the values which guide expected behaviours Orient themselves to the achievement of desirable organisational ends
- Organisational culture is communicated to employees in a number of ways: Stories Organisational stories are usually a narrative of significant events or people within the organisation. They may be stories about individuals such as their founders or about organisational achievements. These stories anchor the present in the past and provide both legitimacy and explanations for current practice and exemplify what is important to the organisation.
- Organisational culture is communicated to employees in a number of ways: Rituals Rituals are repetitive sequences of activities that express and reinforce the key values of the organisation. These can take many forms including award ceremonies.
- Organisational culture is communicated to employees in a number of ways: Material Symbols Dress attire, size of office, company cars, car parking are all examples of material symbols. They say something about the organisation and the people in it. These material symbols convey to employees, who are important, what is important, the degree of egalitarianism and the kind of behaviour that is expected and appropriate. Many employees actually view these material symbols as something to strive for.
- Organisational culture is communicated to employees in a number of ways: Language All organisations develop their own ‘language; unique terms to describe aspects of their business. New employees are usually overwhelmed by the acronyms and jargon of their new workplace but once assimilated this language acts to unite people. Note to teachers: The example in the bubbles are from the printing industry.
- Taken from Table 3.5 Suggestion: You may alert students to the fact that there are dedicated ethic’s centres to help guide organisations, ie St James Ethics Centre: http://www.ethics.org.au/about-us/support-our-work/why-our-work-matters.html Suggestion: While morality answers the question “what should I do?”, ethics, for its part, answers the question dealing with “how should I do”, or better still: “how should I live within and by my company?”. Ethics therefore questions not only the person, but also his environment. An appropriate reading is: Ethical behaviour and social responsibility in organisations: process and evaluationAnne Marie Fray, University of Surrey, Surrey, UK. Management Decision. London: 2007. Vol. 45, Iss. 1; p. 76
- Taken from page 105 of text
- Suggestion: You may like to show students this clip which encapsulates the ideas outlined in the powerpoint slide: http://au.youtube.com/watch?v=NN41aheGYhk Rather than tell people to “have a nice day,” go out of your way to make someone’s day nice. While morality answers the question “what should I do?”, ethics, for its part, answers the question dealing with “how should I do”, or better still: “how should I live within and by my company?”. Ethics therefore questions not only the person, but also his environment. Ethical behaviour and social responsibility in organisations: process and evaluationAnne Marie Fray, University of Surrey, Surrey, UK. Management Decision. London: 2007. Vol. 45, Iss. 1; p. 76 GRI or Global Reporting Initiative, created in 1987, is an international initiative wherein NGOs, companies, consultancy firms, universities, etc. participate in reflection processes. It enacts guidelines for helping organisations to generate reports having economic, social, and environmental dimensions. http://www.ethics.org.au/living-ethics/responsible-business-practice
- Summary response: Lecturers should clearly articulate the differences between the two: Espoused Values are those organisational values expressed in public documents, a public declaration. Values-in-use are those perceived by the employees of the organisation to be in operation on a day-to-day basis within the organisation. Many organisations however have not maintained integrity between the spoken word and the actions of the organisation. Espoused values and organisational values are not congruent – not “walking the talk” Lecturers can briefly explain person-organisation (P-O) fit: The compatibility between individuals and organisations (Kristof, 1996); Three studies (Bretz, Ash and Dreher, 1989; Turban and Keon, 1993; and Cable and Judge, 1996) found that: congruence between individual and organisational characteristics does have an influence on organisation selection, values are one of the commensurate characteristics under examination when selecting organisations, and that job seekers should try to ascertain an organisation’s culture so that their perceptions of fit are better informed.
- Summary response: Mitroff and Denton (1999) in their seminal study “A Study of Spirituality in the Workplace” of 2000 HR executives, asked “What gives people meaning in their work?”. Respondents answered that beyond a certain threshold, pay ceases to be the most important thing and higher needs prevail. Put simply, they defined workplace spirituality as the “Basic feeling of being connected with one’s complete self, others and the entire universe” Purnell-Webb, Glendon, Creed (2000) suggested workplace spirituality could be operationalised in five different ways Relationships Beliefs Values Experiences Behaviour Relationship included with the self, with others and with the environment – this latter dimension includes respect for and enjoyment of nature and an element of social responsibility (altruism, philanthropy). Therefore it can be argued spirituality and sustainability need not be mutually exclusive, but inclusive.