MANAGEMENT

Steven P. RobbinsMary Coulter

8th Edition

Course InstructorSir Yasir Ashraf

Presenters

Muzakir065

Javeeria012

Huzaifa062

The EnvironmentOf

An Organization

[Chapter # 3]

MuzakirBBA-2014-065

Organization Culture Issues

Creating an Ethical

Culture

High in risk tolerance

Low to moderate

aggressiveness

Focus on means as

well as outcomes

Suggestions for Managers: Creating a More 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.

Creating an Innovative CultureChallenge and

involvementFreedomTrust and opennessIdea timePlayfulness/humorConflict resolutionDebatesRisk-taking

Organization Culture Issues

Customer-Responsive Culture

– Hiring the right type of employees (ones with a strong interest in serving customers)

– Having few rigid rules, procedures, and regulations

– Using widespread empowerment of employees

Customer - Responsive Culture– 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

Suggestions for Managers: Creating a More Customer-Responsive Culture

• Hire service-contact people with the personality and attitudes consistent with customer service—friendliness, enthusiasm, attentiveness, patience, concern about others, and listening skills.

• Train customer service people continuously by focusing on improving product knowledge, active listening, showing patience, and displaying emotions.

• Socialize new service-contact people to the organization’s goals and values.

• Design customer-service jobs so that employees have as much control as necessary to satisfy customers.

• Empower service-contact employees with the discretion to make day-to-day decisions on job-related activities.

• As the leader, convey a customer-focused vision and demonstrate through decisions and actions the commitment to customers.

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.

Strong sense of purpose

Characteristics of a Spiritual Organization

Trust and openness

Employee empowerment

Toleration of employees’

expression

Focus on individual

development

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EnvironmentOf theOrganization

Our surroundings are known as environment.

What is environment?

The environment is the source of opportunities and threats for an organization. Opportunities are events and trends that create chances to improve an organizations performance level. Threats are events and trends that may undermine an organizations performance.

Relation between business organization and environment

© 2007 Prentice Hall, Inc. All rights reserved. 3–19

Exhibit 3–9 The External Environment

3–20

External Environment– The forces and institutions outside the organization that potentially can affect the organization’s

performance.

components

Specific environment

General environment

Defining the External Environment

External forces that have a direct and immediate impact on the organization.

components

customers suppliers competitors Pressure groups

Specific environment

Customers- Absorb organization’s outputsSuppliers - Provide material and equipmentCompetitors- Provide similar services/productsPressure groups- Special-interest groups

Specific environment

Broad economic conditions that may affect the organization.

Components

Technological element

Legal and political element

Socio culture element

Economic element

International element

General environment

Technological element - It refers to the current state of knowledge about the production of goods and services. Economic element – It has a great impact on the management practices in an organization.Economics factors are Inflation Interest rate

General environment

Change in income Stock market fluctuation legal political element- It refers to legal and

governmental system within which an organization must function.

For example Civil rights act of 1991 Americans with disabilities act of 1990. Socio – culture element- It is necessary to monitor the prevailing trend from time to time and it offers opportunities and threats.

Factors of socio-culture are Customs Norms Behavior International element- The political , social, cultural and economic situations of one country are significantly different from other country therefore development in a country outside an organization home country has great influence on the success of organization.

For example A slight increase in the value of dollar has great influence on the ability of an organization to conduct business abroad.

© 2007 Prentice Hall, Inc. All rights reserved. 3–28

POLITICAL ACTS• Occupational Safety and Health Act of 1970• Consumer Product Safety Act of 1972• Equal Employment Opportunity Act of 1972• Worker Adjustment and Retraining Notification Act of 1988• Americans with Disabilities Act of 1990 • Civil Rights Act of 1991• Family and Medical Leave Act of 1993• Child Safety Protection Act of 1994 • U.S. Economic Espionage Act of 1996• Electronic Signatures in Global and National Commerce Act of 2000• Sarbanes-Oxley Act of 2002 • Fair and Accurate Credit Transactions Act of 2003

© 2007 Prentice Hall, Inc. All rights reserved. 3–29

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