Effective management requires organizations to understand and effectively navigate both their internal and external environments, leveraging their strengths, addressing their weaknesses, capitalizing on opportunities, and mitigating risks to achieve their goals and maintain competitiveness.

1. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-1
Are managers free to do
whatever they want?

2. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-2
Internal and External Environments

3. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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OVERVIEW
• Omnipotent and Symbolic Views
• The Internal Environment
• The External Environment
• Stakeholders Analysis

4. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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The Manager:
Omnipotent or Symbolic?
• Omnipotent View of Management - the view
that managers are directly responsible for an
organization’s success or failure.
– Martin Winterkorn (Volkswagen)

5. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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The Manager:
Omnipotent or Symbolic?
• Symbolic View of Management - the view
that much of an organization’s success or
failure is due to external forces outside
managers’ control.

6. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Managerial Decision Making
Decision
Making
Internal
Environment
External
Environment

7. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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The Internal Environment
• Internal factors affecting an organization:
Top
management
Employees
Physical work
environment
Culture

8. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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The Organization’s Culture
• Organizational culture is a set of
Internal
values
Customs Attitudes Behaviors

9. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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“A corporation’s culture is what determines
how people behave when they are not
being watched.”
(Thomas J. Tierney, Chairman, eBay)
The Organization’s Culture

10. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Three Levels of Organizational
Culture
Artifacts
& Behavior
Norms & Values
Underlying Assumptions
What we see, what a newcomer, visitor or
consultant would notice (e.g., dress, organization
charts, physical layout, degree and formality,
logos, and mission statement.
What they say, What we would be told is
the reason things are the way they are and
should be. Company philosophy, norms
and justifications.
.
What they deeply believe in and act on
Unconscious, taken for granted beliefs
about the organization and its
work/purpose, about people, rewards etc.
Based on Edgar Schein, “Coming to a new awareness of organizational culture,” pp. 375-390 in J.B. Lau and A.B. Shani,
Behavior in Organizations, Irwin, 1988

11. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. All rights reserved 2-11
Dimension Organization A Organization B
Attention to Detail
Outcome Orientation
People Orientation
Team Orientation
Aggressiveness
Stability
Innovation and Risk Taking
Class Activity: Contrasting Organizational
Cultures

12. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Where Does Culture
Come From?
• Organization founder
• Vision and mission
• Top management
behavior
• Socialization - The
process that helps
employees adapt to the
organization’s culture.

13. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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The External Environment
• External Environment - those factors and forces
outside the organization that affect its 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

14. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Components of External Environment
Organization
Economic
Global
Political/Legal
Sociocultural
Technological
Demographic

15. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Who Are Stakeholders?
• Stakeholders - any constituencies in the
organization’s environment that are affected
by an organization’s decisions and actions and
those which affect the organization.

16. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Organizational Stakeholders

17. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Organizational
Stakeholders

18. Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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Questions and comments