An example of a managerial planning decision that is influenced by culture is

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What are the managerial decision affected by culture?
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Management And Organizational Environment

1. Chapter 2
2. TABLE OF CONTENTS • Summary • What Is The External Environment And Why Is It Important? • How Does The External Environment Affect Managers? • What Is Organizational Culture? • How Does Organizational Culture Affect Managers?
3. SUMMARY 3
4. SUMMARY • Explain what the external environment is and why it’s important. The external environment refers to factors, forces, situations, and events outside the organization that affects its performance. It includes economic, demographic, political/legal, sociocultural, technological, and global components. The external environment is important because it poses constraints and challenges to managers. • Discuss how the external environment affects managers. There are three ways that the external environment affects managers: its impact on jobs and employment, the amount of environmental uncertainty, and the nature of stakeholder relationships.
5. SUMMARY • Define what organizational culture is and explain why it’s important. Organizational culture is the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. It’s important because of the impact it has on decisions, behaviors, and actions of organizational employees. • Describe how organizational culture affects managers. Organizational culture affects managers in two ways: through its effect on what employees do and how they behave, and through its effect on what managers do as they plan, organize, lead, and control.
6. LEARNING OBJECTIVES In this chapter we will address the following questions: • Explain what the external environment is and why it’s important. • Discuss how the external environment affects managers. • Define what organizational culture is and explain why it’s important. • Describe how organizational culture affects managers.
7. WHAT IS THE EXTERNAL ENVIRONMENT AND WHY IS IT IMPORTANT? Section 1
8. WHAT IS THE EXTERNAL ENVIRONMENT AND WHY IS IT IMPORTANT? • The term external environment refers to factors, forces, situations, and events outside the organization that affect its performance Organization factors Organization forces Organization situations Organization outside events
9. COMPONENTS OF THE EXTERNAL ENVIRONMENT
10. COMPONENTS OF THE EXTERNAL ENVIRONMENT Economic • Encompasses factors such as interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages. Demographics • Concerned with trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition. Technological • Concerned with scientific or industrial innovations.
11. COMPONENTS OF THE EXTERNAL ENVIRONMENT Sociocultural • Concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior. Political/legal • Looks at federal, state, and local laws, as well as laws of other countries and global laws
12. HOW HAS THE ECONOMY CHANGED? • Analysts argue that the recent economic crisis—called the “Great Recession” began with turmoil in home mortgage markets in the United States as many homeowners found themselves unable to make their payments. • The problems with home mortgages also affected businesses as credit markets collapsed. • As liquidity dried up, the worldwide economic system sputtered and nearly collapsed. Great Recession Credit markets collapsed Liquidity dried up
13. HOW HAS THE ECONOMY CHANGED? • The slow recovery of global economies has continued to be a constraint on organizational decisions and actions. • In addition, the World Economic Forum identified two significant risks facing business leaders and policy makers over the next decade: “severe income disparity and chronic fiscal imbalances.” • Economic Inequality and the Economic Context. People are becoming more discontented with the income gap between the rich and everyone else. People’s belief that anyone can achieve prosperity is waning. Business leaders need to recognize how social attitudes in the economic context affect business decisions. Slow recovery of global economies Severe income disparity & chronic fiscal imbalances Economic Inequality and the Economic Context
14. WHAT ROLE DO DEMOGRAPHICS PLAY? • The size and characteristics of a country’s population can have a significant effect on what it’s able to achieve. • Demographics, the characteristics of a population used for purposes of social studies, can and do have a significant impact on how managers manage. • Demographic characteristics of concern to organizations include: age, income, sex, race, education level, ethnic makeup, employment status, and geographic location. Significant effect what to achieve Use for social studies i.e. how managers manage Concern to organization i.e. age, income, education level etc. Manager need to manage different age groups all working together
15. WHAT ROLE DO DEMOGRAPHICS PLAY? Age is a particularly important demographic for managers since the workplace often has different age groups all working together. • Baby Boomers are those individuals born between 1946 and 1964. The sheer numbers of people in that cohort means they’ve had a significant impact on every aspect of the external environment – including Social Security System • Gen X is used to describe those individuals born between 1965 and 1977. This age group has been called the baby bust generation since it followed the baby boomers and is one of the smaller age cohorts. Significant effect what to achieve Use for social studies i.e. how managers manage Concern to organization i.e. age, income, education level etc. Manager need to manage different age groups all working together
16. WHAT ROLE DO DEMOGRAPHICS PLAY? • Gen Y (or the “Millennials”) is an age group typically considered to encompass those individuals born between 1978 and 1994. As the children of the Baby Boomers, this age group is large in number and making its imprint on external environmental conditions as well. • Post-Millennials—the youngest identified age group, basically teens and middle-schoolers. One thing that characterizes this group is that “many of their social interactions take place on the Internet, where they feel free to express their opinions and attitudes.” Significant effect what to achieve Use for social studies i.e. how managers manage Concern to organization i.e. age, income, education level etc. Manager need to manage different age groups all working together
17. WHAT IS THE EXTERNAL ENVIRONMENT AND WHY IS IT IMPORTANT? VideoTime–“Legalvs.EthicalLiability:ACrisisofLeadershipandCulture”  “Professor Fugate argues that leaders at all levels and across industries need to focus on ethical liability above and beyond legal liabilities for themselves and their organizations.”  Mel Fugate is an associate professor of Management and Organizations in the Cox School of Business at Southern Methodist University. His research and consulting aim to enhance individual and organizational performance by utilizing a variety of practical, research- based tools related to leadership development, organizational change, performance management, organizational culture, and employee engagement.  https://www.youtube.com/watch?v=ve XPk4Zeqtk
18. HOW DOES THE EXTERNAL ENVIRONMENT AFFECT MANAGERS? Section 2
19. HOW DOES THE EXTERNAL ENVIRONMENT AFFECT MANAGERS? • One of the important organizational factors affected by changes in the external environment is jobs and employment. • For example, economic downturns result in higher unemployment and place constraints on staffing and production quotas for managers. • Not only does the external environment affect the number of jobs available, but it also impacts how jobs are managed and created. Changing conditions can create demands for more temporary work and alternative work arrangements
20. HOW THE EXTERNAL ENVIRONMENT AFFECTS MANAGERS • Jobs and employment - As external environmental conditions one of the most powerful constraints managers face is the impact of such changes on jobs and employment
21. ENVIRONMENTAL UNCERTAINTY AND COMPLEXITY • Environments differ in their amount of environmental uncertainty, which relates to the degree of change in an organization’s environment and the degree of complexity in that environment. • Degree of change is characterized as being dynamic or stable. In a dynamic environment, components of the environment change frequently. If change is minimal, the environment is called a stable environment. Environmental Uncertainty Environmental Complexity
22. ENVIRONMENTALUNCERTAINTYMATRIX
23. ENVIRONMENTAL UNCERTAINTY AND COMPLEXITY • The degree of environmental complexity is the number of components in an organization’s environment and the extent of an organization’s knowledge about those components. • If the number of components and the need for sophisticated knowledge is minimal, the environment is classified as simple. If a number of dissimilar components and a high need for sophisticated knowledge exist, the environment is complex. • Because uncertainty is a threat to organizational effectiveness, managers try to minimize environmental uncertainty
24. MANAGING STAKEHOLDER RELATIONSHIPS • Stakeholders - any constituencies in the organization’s environment that are affected by an organization’s decisions and actions.
25. ORGANIZATIONAL STAKEHOLDERS
26. STAKEHOLDER RELATIONSHIP MANAGEMENT • It can lead to improved predictability of environmental changes, more successful innovation, greater degrees of trust among stakeholders, and greater organizational flexibility to reduce the impact of change. • It is the “right” thing to do, because organizations are dependent on external stakeholders as sources of inputs and outlets for outputs and the interest of these stakeholders should be considered when making and implementing decisions. Improved environmental changes Input and output for implementing decisions
27. WHAT IS THE EXTERNAL ENVIRONMENT AND WHY IS IT IMPORTANT? Environmentaluncertainty-Question • What is environmental uncertainty? What impact does it have on managers and organizations? Find two examples in current business periodicals that illustrate how environmental uncertainty affects organizations. • “Businesses are built on relationships.” What do you think this statement means? What are the implications for managing the external environment?
28. WHAT IS THE EXTERNAL ENVIRONMENT AND WHY IS IT IMPORTANT? Environmentaluncertainty-Answers What is environmental uncertainty? What impact does it have on managers and organizations? Find two examples in current business periodicals that illustrate how environmental uncertainty affects organizations. • Environmental uncertainty relates to (1) the degree of change in an organization’s environment and (2) the degree of complexity in that environment. Because uncertainty is a threat to organizational effectiveness, managers try to minimize environmental uncertainty. Students should find articles on organizations that operate in varying degrees of uncertainty. Firms that operate in technology intensive markets, such as computers or cell phones, will typically experience a high degree of uncertainty. Managers in these firms will have to work hard to minimize the impact of behavioral variables such as stress on the workforce. On the other hand, firms that operate in a less dynamic environment have managers that are less stressed by constant change in the environment
29. WHAT IS THE EXTERNAL ENVIRONMENT AND WHY IS IT IMPORTANT? Environmentaluncertainty-Answers “Businesses are built on relationships.” What do you think this statement means? What are the implications for managing the external environment? • Organizations depend on their environment and their stakeholders as a source of inputs and a recipient of outputs. Good relationships can lead to organizational outcomes such as improved predictability of environmental changes, more successful innovations, and greater degrees of trust among stakeholders, and greater flexibility in acting to reduce the impact of change. In addition, relationship management and maintaining good relationships have been proven by many researchers to have an effect on organizational performance. High-performing companies tend to consider the interests of all major stakeholder groups as they make decisions
30. WHAT IS ORGANIZATIONAL CULTURE? Section 3
31. WHAT IS ORGANIZATIONAL CULTURE? • Organizational Culture - The shared values, principles, traditions, and ways of doing things that influence the way organizational members act. • Individuals perceive organizational culture based on what they see, hear, or experience within the organization. • Organizational culture is a descriptive term. It describes, rather than evaluates. Organizational culture is shared by individuals within the organization. • Strong Cultures - Organizational cultures in which key values are intensely held and widely shared Organizational Culture Shared values, ways of doing things and members act Strong cultures Org. culture is the key value held and shared
32. DIMENSIONS OF ORGANIZATIONAL CULTURE
33. DIMENSIONS OF ORGANIZATIONAL CULTURE • Innovation and risk taking (the degree to which employees are encouraged to be innovative and take risks). • Attention to detail (the degree to which employees are expected to exhibit precision, analysis, and attention to detail). • Outcome orientation (the degree to which managers focus on results or outcomes rather than on the techniques and processes used to achieve those outcomes). Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability
34. DIMENSIONS OF ORGANIZATIONAL CULTURE • People orientation (the degree to which management decisions take into consideration the effect on people within the organization). • Team orientation (the degree to which work activities are organized around teams rather than individuals). • Aggressiveness (the degree to which employees are aggressive and competitive rather than cooperative). • Stability (the degree to which organizational activities emphasize maintaining the status quo in contrast to growth). Innovation and risk taking Attention to detail Outcome orientation People orientation Team orientation Aggressiveness Stability
35. CONTRASTING ORGANIZATIONAL CULTURES
36. STRONG VERSUS WEAK CULTURES
37. WHERE DOES CULTURE COME FROM? • The original source of an organization’s culture is usually a reflection of the vision or mission of the organization’s founders. • Founders project an image of what the organization should be and what its values are. • Founders “impose” their vision on employees. • Organizational members create a shared history or “who we are.”
38. ESTABLISHING AND MAINTAINING ORGANIZATIONAL CULTURE
39. HOW DO EMPLOYEES LEARN CULTURE? • Stories - Narratives of significant events or people, e.g. organization founders, rule breaking, reaction to past mistakes etc. • Rituals - Sequences of activities that express and reinforce the important values and goals of the organization • Material Artifacts and Symbols - Convey the kinds of behavior that are expected, e.g. risk taking, participation, authority, etc. • Language - Acts as a common denominator that bonds members Stories Rituals Material artifacts Language
40. HOW DOES ORGANIZATIONAL CULTURE AFFECT MANAGERS? Section 4
41. HOW DOES CULTURE AFFECT WHAT EMPLOYEES DO? • Strong cultures are found in organizations where key values are intensely held and widely shared. • Most organizations have moderate- to-strong cultures. In these organizations, high agreement exists about what is important and what defines “good” employee behavior, for example. • Strong cultures can create predictability, orderliness, and consistency without the need for written documentation
42. HOW DOES CULTURE AFFECT WHAT MANAGERS DO? • Constraints from organizational culture are rarely explicit. • The link between corporate values and managerial behavior is fairly straightforward. • The culture conveys to managers what is appropriate behavior. • An organization’s culture, particularly a strong one, constrains a manager’s decision- making options in all managerial functions.
43. MANAGERIAL DECISIONS AFFECTED BY CULTURE
44. HOW DOES ORGANIZATIONAL CULTURE AFFECT MANAGERS? VideoTime–“CompanyCulture”  “Is a Company's Culture Determined by Design or Default? Lifelong entrepreneur Jay Wilkinson, President of Firespring, a 2011 Inc. Magazine Top Small Company Workplace shares his company's secret sauce to a vibrant culture that attracts and keeps great talent.”  Jay Wilkinson is the founder of Firespring- a Nebraska-based B Corporation featured by Inc. Magazine in 2016 as one of the Top 50 Places to Work in America. His TEDx talk on company culture has more than 1 million views. As a philanthropist, Jay has raised millions of dollars for nonprofits, Jay appears on CNN.  https://www.youtube.com/watch?v=WD FqEGI4QJ4

What are the managerial decision affected by culture?

The effect that organizational culture has on managerial decisions depends on whether the organization has a strong or a weak culture. Organizational culture determines the decision making process as well as decision making speed. Some cultures permit all employees to participate in the decision making process.

Which managerial planning decision is affected by organizational culture?

The correct answer is d. how the structure employee evaluations. Various managerial activities are carried out within the organization. These activities define the organizational culture, and organizational culture is directly affected by the employees.

Which kind of culture most affects the way managers plan quizlet?

which kind of culture most affects the way managers plan ? a strong organizational culture helps guide the way managers plan.

Is an organizing decision affected by the culture?

So, the organizational culture influences decisions by its members and the way in which it influences its members' acceptance or rejection of the decision. That means when the manager making decision, he or she must consider more thing to ensure the decision can work out efficient.