3. Internal and External Environments.pptx

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. Are managers free to do whatever they want?

2. Internal and External Environments

3. OVERVIEW Omnipotent and Symbolic Views The Internal Environment The External Environment Stakeholders Analysis

4. 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. 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. Managerial Decision Making

7. The Internal Environment Internal factors affecting an organization:

8. The Organization’s Culture Organizational culture is a set of

9. “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. 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. 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. 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. 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. Components of External Environment

15. 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. Organizational Stakeholders

17. Organizational Stakeholders

18. Questions and comments