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The document discusses the external environment's impact on organizations and managers, emphasizing its importance in performance and decision-making. It defines organizational culture as shared values and principles that influence behavior within an organization, highlighting its effect on both employees and managers. Additionally, it addresses how economic changes and demographic factors shape managerial roles and stakeholder relationships.

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15 views29 pages

5 - 6

The document discusses the external environment's impact on organizations and managers, emphasizing its importance in performance and decision-making. It defines organizational culture as shared values and principles that influence behavior within an organization, highlighting its effect on both employees and managers. Additionally, it addresses how economic changes and demographic factors shape managerial roles and stakeholder relationships.

Uploaded by

Faisal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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2

Chapter

The
Management
Environment

Copyright ©2015 Pearson Education, Inc. 2-1


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.

Copyright ©2015 Pearson Education, Inc. 2-2


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

Copyright ©2015 Pearson Education, Inc. 2-3


External Environment

Factors, forces, situations, and events outside


the organization that affect its performance.

Copyright ©2015 Pearson Education, Inc. 2-4


Components of the External
Environment

Copyright ©2015 Pearson Education, Inc. 2-5


How Has the Economy Changed?

• Turmoil in mortgage markets


• Spread to businesses
• “Great Recession”
• Foreclosures, unemployment, public debt, and
social problems

Copyright ©2015 Pearson Education, Inc. 2-6


Economic Inequality
Harris Interactive Poll:

Only 10 percent of adults think economic


inequality is “not a problem at all.”

Copyright ©2015 Pearson Education, Inc. 2-7


How Much Difference Does a
Manager Make?

Managers:
All powerful OR helpless?

Copyright ©2015 Pearson Education, Inc. 2-8


Demographics

Demography is destiny.

Age Cohorts
• Baby Boomers
• Gen X
• Gen Y
• Post-Millenials

Copyright ©2015 Pearson Education, Inc. 2-9


2.2 Discuss how the
external
environment affects
managers.

Copyright ©2015 Pearson Education, Inc. 2-10


How Does External Environment
Affect Managers?

• Jobs and employment


• Assessing environmental uncertainty
• Managing stakeholder relationships

Copyright ©2015 Pearson Education, Inc. 2-11


Assessing Environmental
Uncertainty

Copyright ©2015 Pearson Education, Inc. 2-12


Managing Stakeholder
Relationships

Stakeholders:
any constituencies in an organization’s
environment that are affected by that
organization’s decisions and actions.

Copyright ©2015 Pearson Education, Inc. 2-13


Organizational Stakeholders

Copyright ©2015 Pearson Education, Inc. 2-14


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

Copyright ©2015 Pearson Education, Inc. 2-16


What is Organizational Culture?

Copyright ©2015 Pearson Education, Inc. 2-17


Organizational Culture

Shared values, principles, traditions,


and ways of doing things that influence the
way an organization’s members act.

Copyright ©2015 Pearson Education, Inc. 2-18


Culture is:

1. Perceived
2. Descriptive
3. Shared

Copyright ©2015 Pearson Education, Inc. 2-19


Dimensions of Culture

Copyright ©2015 Pearson Education, Inc. 2-20


Copyright ©2015 Pearson Education, Inc. 2-21
2.4 Describe how
organizational
culture affects
managers.

Copyright ©2015 Pearson Education, Inc. 2-22


How Does Organizational Culture
Affect Managers

• Effect on what employees do and how they


behave
• Effect on what managers do

Copyright ©2015 Pearson Education, Inc. 2-23


How Does Culture Affect What
Employees Do?
Strong cultures:
cultures in which the key values are deeply held
and widely shared.

Copyright ©2015 Pearson Education, Inc. 2-24


Strong Cultures Can:

• Substitute for formal rules and regulations


• Create predictability, orderliness, and consistency

Copyright ©2015 Pearson Education, Inc. 2-25


Acclimating to Corporate Culture

Copyright ©2015 Pearson Education, Inc. 2-26


How Does Culture Affect What
Managers Do?

Copyright ©2015 Pearson Education, Inc. 2-27


Company Values Affect Managers’
Behavior

“Ready-aim-fire” versus “Ready-fire-aim”

Copyright ©2015 Pearson Education, Inc. 2-28


Managerial Decisions Influenced by
Culture

Copyright ©2015 Pearson Education, Inc. 2-29


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