How the External Environment Affects Managers? Environmental constraints & challenges: 1. Through its impact on jobs and employment 2. Through the environmental uncertainty that is present 3. Through the various stakeholder relationships that exist between an organization and its external constituencies.
How the External Environment Affects Managers? 1. JOBS AND EMPLOYMENT - global recession - many employers use flexible work arrangements to meet work output demand. For instance, work tasks may be done by freelancers hired to work on an as-needed basis or by temporary workers who work fulltime but are not permanent employees or by individuals who share jobs
2. ASSESSING ENVIRONMENTAL UNCERTAINTY & COMPLEXITY
Environmental Uncertainty If the components in an organization’s environment change frequently, it’s a dynamic environment. If change is minimal, it’s a stable one. A stable environment might be one with no new competitors, few technological breakthroughs by current competitors, little activity by pressure groups to influence the organization, and so forth
Environmental Uncertainty If change is predictable, is that considered dynamic? No. Think of department stores that typically make one-quarter to one-third of their sales in November and December. The drop-off from December to January is significant. But because the change is predictable, the environment isn’t considered dynamic. When we talk about degree of change, we mean change that’s unpredictable. If change can be accurately anticipated, it’s not an uncertainty for managers.
Environmental complexity An organization with fewer competitors, customers, suppliers, government agencies, and so forth faces a less complex and uncertain environment Complexity is also measured in terms of the knowledge an organization needs about its environment. For instance, managers at Sulit.com must know a great deal about their Internet service provider’s operations if they want to ensure that their Web site is available, reliable, and secure for their customers.
3. MANAGING STAKEHOLDER RELATIONSHIPS
Current Issues in Organizational Culture 1. Creating an Innovative Culture 2. Creating a Customer-Responsive Culture 3. Spirituality and Organizational Culture
Creating an Innovative Culture What does an innovative culture look like? According to Swedish researcher Goran Ekvall, it would be characterized by the following: Challenge and involvement – Are employees involved in, motivated by, and committed to longterm goals and success of the organization? Freedom – Can employees independently define their work, exercise discretion, and take initiative in their day-to-day activities? Trust and openness – Are employees supportive and respectful to each other?
Creating an Innovative Culture Idea time – Do individuals have time to elaborate on new ideas before taking action? Playfulness/humor – Is the workplace spontaneous and fun? Conflict resolution – Do individuals make decisions and resolve issues based on the good of the organization versus personal interest? Debates – Are employees allowed to express opinions and put forth ideas for consideration and review? Risk-taking – Do managers tolerate uncertainty and ambiguity, and are employees rewarded for taking risks?
Example of business culture For example, Google describes the company as still feeling like a small company even though it has grown tremendously: "At lunchtime, almost everyone eats in the office café, sitting at whatever table has an opening and enjoying conversations with Googlers from different teams... Every employee is a hands-on contributor, and everyone wears several hats... no one hesitates to pose questions directly to Larry or Sergey in our weekly all-hands (“TGIF”) meetings – or spike a volleyball across the net at a corporate officer.“ Source: http://jobsearch.about.com/od/jobsearchglossary/g/glossary-definition.htm
Characteristics of a Spiritual Organization 1. Strong sense of purpose. Spiritual organizations build their cultures around a meaningful purpose. 2. Focus on individual development. Spiritual organizations recognize the worth and value of individuals. They aren’t just providing jobs; they seek to create cultures in which employees can continually grow and learn.
Characteristics of a Spiritual Organization 3. Trust and openness. Spiritual organizations are characterized by mutual trust, honesty, and openness. Managers aren’t afraid to admit mistakes. And they tend to be extremely upfront with employees, customers, and suppliers. 4. Employee empowerment. Managers trust employees to make thoughtful and conscientious decisions. 5. Toleration of employee expression. The final characteristic that differentiates spiritually based organizations is that they don’t stifle employee emotions. They allow people to be themselves—to express their moods and feelings without guilt or fear of reprimand
