CONSTRATNTS & CHALLENGES FOR GLOBAL MANAGERS (Chapter 2) Session 3

The Manager: Omnipotent or Symbolic Omnipotent View Managers are directly responsible for an organization’s success or failure In the omnipotent view, someone has to be held accountable when organizations perform poorly regardless of the reasons, and that someone is the manager.

The Manager: Omnipotent or Symbolic Symbolic view Much of an organization’s success or failure is due to external forces outside managers’ control. According to this view it is unreasonable to expect managers to significantly affect an organization`s performance. Instead, performance is influenced by factors over which managers have little control such as the economy, customers, governmental policies, competitors' actions, industry conditions and decisions made by previous managers.

Constraints on Managerial Discretion In reality, managers are neither all-powerful nor helpless. But their decisions and actions are constrained

The External Environment External environment refers to factors and forces outside the organization that affect its performance.

The External Environment Economic: interest rates, inflation, stock market fluctuations, and business cycle stages. Demographic: population age, race, gender, education level, geographic location, income, and family composition. Political/legal: local laws and global laws. It also includes a country’s political conditions and stability. Socio-cultural: societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes. Technological: scientific or industrial innovations. Global: issues associated with globalization and a world economy

How the External Environment Affects Managers 1. Jobs & Employment: one of the most powerful constraints managers face. Global recession (millions of jobs eliminated) Creates challenges for managers who must balance work demands and having enough of the right types of people to do the organization’s work. Freelancers and outsourcing

How the External Environment Affects Managers 2. Assessing Environmental Uncertainty: refers to the degree of change and complexity in an organization’s environment Based on degree of change: If the components in an organization’s environment change frequently, it’s a dynamic environment. If change is minimal, it’s a stable environment. Based on complexity: Few components in the environment and minimal need for sophisticated knowledge, it is a simple environment Many components and vast knowledge required, it is a complex environment

How the External Environment Affects Managers 3. Managing Stakeholder Relationship: affected by organization’s decisions and actions. Why should managers care about managing stakeholder relationships? It is the right thing to do An organization depends on these external groups as sources of inputs (resources) and as outlets for outputs (goods and services) It can lead to desirable organizational outcomes such as greater degree of trust Better organizational performance

Organizational Culture: Constraint & Challenges Each individual has a unique personality So does and organization, which in term is described as that specific organization’s culture The shared values, principles, traditions, and ways of doing things that influence the way organizational members act and that distinguish the organization from other organizations. It is a perception, its descriptive and it is shared. organizational culture is descriptive. It’s concerned with how members perceive the culture and describe it, not with whether they like it. Finally, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms. That’s the shared aspect of culture.

Dimensions of Organizational Culture

How Employees Learn Organizational Culture Stories (Southwest Airlines) Rituals (In the early days of Facebook, founder Mark Zuckerberg had an artists paint murals at company headquarters showing children taking over the world with laptops) Material Artifacts & Symbols (The layout of an organization’s facilities, size of offices, the elegance of furnishings, etc.) Language (Organizations often develop acronyms or jargons to describe equipment, key personnel, processes, or products related to its business. New employees are frequently overwhelmed with this but quickly learn and become part of the organization) organizational culture is descriptive. It’s concerned with how members perceive the culture and describe it, not with whether they like it. Finally, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms. That’s the shared aspect of culture.

How Culture Affects Managers An organization’s culture limits what managers can and cannot do Ready-Aim-Fire (managers will study and analyze proposed projects endlessly before committing to them) Ready-Fire-Aim (managers take action and then analyze what has been done) organizational culture is descriptive. It’s concerned with how members perceive the culture and describe it, not with whether they like it. Finally, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms. That’s the shared aspect of culture.

Current Issues on Organizational Culture 1. Creating an Innovative Culture What does innovative culture look like Any successful organization needs a culture that supports innovation. Challenge & Involvement Freedom Trust & Openness A common belief- the most important driver of innovation in companies is a supportive corporate culture. Humor/Playfulness Conflict Resolution Risk-taking Debate organizational culture is descriptive. It’s concerned with how members perceive the culture and describe it, not with whether they like it. Finally, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms. That’s the shared aspect of culture.

2. Creating a Customer Responsive Culture Characteristics of Customer responsive organizations 1. Hire employees who have an attitude of helping out 2. Job Environment should provide employees with sufficient control over their own work. 3. Give employees the discretion to make day to day decisions 4. Have sufficient role clarity 5. Have a consistent urge to not only satisfy but delight customers organizational culture is descriptive. It’s concerned with how members perceive the culture and describe it, not with whether they like it. Finally, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms. That’s the shared aspect of culture.

3. Workplace Spirituality Organizations with a spiritual culture recognize that people have a mind and a spirit, seek to find meaning and purpose in their work, and desire to connect with other human beings and be part of a community. Workplace spirituality seems to be important now for a number of reasons. Employees look for ways to cope with the stresses and pressures of a turbulent pace of life. Contemporary lifestyles—single-parent families, geographic mobility, temporary jobs, technologies that create distance between people organizational culture is descriptive. It’s concerned with how members perceive the culture and describe it, not with whether they like it. Finally, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms. That’s the shared aspect of culture.

3.Workplace Spirituality We crave involvement and connection. Middle-aged employees suffer from Mid-life issues, they’re looking for something meaningful, something beyond the job. Others wish to integrate their personal life values with their professional lives. Formalized religion hasn’t worked and they continue to look for anchors to replace a lack of faith and to fill a growing sense of emptiness. organizational culture is descriptive. It’s concerned with how members perceive the culture and describe it, not with whether they like it. Finally, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms. That’s the shared aspect of culture.