Chapter 3 - Organizational Culture and Environment: The Constraints
The Manager: Omnipotent or Symbolic
 Contrast the actions of managers according to the omnipotent and symbolic
views.
 Explain the parameters of managerial discretion.
According to the omnipotent view, managers are directly responsible for an
organization’s success or failure. However, the symbolic view argues that much of an
organization’s success or failure is due to external forces outside managers’ control.
The parameters of managerial discretion (see Exhibit 3-1) include the organization’s
culture and the environment in which the organization exists. However, these parameters
don’t totally constrain a manager; managers can and do influence their culture and
environment.
The Organization’s Culture
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Describe the seven dimensions of organizational culture.
Discuss the impact of a strong culture on organizations and managers.
Explain the source of an organization’s culture.
Describe how culture is transmitted to employees.
Describe how culture affects managers.
The seven dimensions (see Exhibit 3-2) are as follows: (1) attention to detail (degree
to which employees are expected to exhibit precision, analysis, and attention to detail);
(2) outcome orientation (degree to which managers focus on results or outcomes rather
than on how those outcomes are achieved); (3) people orientation (degree to which
management decisions take into account the effects on people in the organization); (4)
team orientation (degree to which work is organized around teams rather than
individuals); (5) aggressiveness (degree to which employees are aggressive and
competitive rather than cooperative); (6) stability (degree to which organizational
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decisions and actions emphasize maintaining the status quo); and (7) innovation and risk
taking (degree to which employees are encouraged to be innovative and to take risks).
Research results are suggesting that in organizations with strong cultures: employees
tend to be more committed to their organizations; recruitment efforts and socialization
practices are used to build employee commitment; and there is higher organizational
performance. The impact of a strong culture on managers is that as the culture becomes
stronger, it has an increasing impact on what managers do and constrains their decisionmaking options as they plan, organize, lead, and control.
An organization’s culture and general way of doing things are largely the result of
what it has done before and how successful it has been doing things that way. The
original source of the culture usually reflects the vision or mission of the organization’s
founders. (See Exhibit 3-5.)
Culture is transmitted to employees through stories (narratives of significant events or
people); rituals (repetitive sequences of activities); material symbols (objects, facilities,
and other aspects of the physical work environment); and language (special and unique
terms, acronyms, and jargon). These elements help employees “learn” what values and
behaviors are important as well as who exemplifies those values.
Culture affects how managers plan, organize, lead, and control. (See Exhibit 3-6.)
Current Organizational Culture Issues Facing Managers
 Describe the characteristics of an ethical culture, an innovative culture, and a
customer-responsive culture.
 Explain why workplace spirituality seems to be an important concern.
 Describe the characteristics of a spiritual organization.
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A culture that is most likely to shape high ethical standards is high in risk tolerance,
low to moderate in aggressiveness, and focuses on means as well as outcomes. An
innovative culture is characterized by the following: challenge and involvement, freedom,
trust and openness, idea time, playfulness/humor, conflict resolution, debates, and risktaking. A customer-responsive culture has six characteristics: employees who are
outgoing and friendly; few rigid rules, procedures, and regulations; widespread use of
empowerment; clear roles and expectations; and employees who are conscientious in
their desire to please the customer.
Workplace spirituality is important for the following reasons: employees are looking
for ways to counterbalance the stresses and pressures of a turbulent pace of life; people
are looking for involvement and connection that they often don’t find in contemporary
lifestyles; aging baby boomers are looking for something meaningful in their lives; and
for some people, organized religion hasn’t fulfilled their needs.
Spiritual organizations tend to have five characteristics: strong sense of purpose,
focus on individual development, trust and openness, employee empowerment, and
toleration of employee expression.
The Environment
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Describe the components of the specific and general environments.
Discuss the two dimensions of environmental uncertainty.
Identify the most common organizational stakeholders.
Explain the four steps in managing external stakeholder relationships.
The specific environment (those external forces that have a direct impact on
manager’s decisions and actions and are directly relevant to an organization’s goals)
includes customers, suppliers, competitors, and pressure groups. The general
environment (those broad external forces that affect the organization) includes economic,
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political/legal, sociocultural, demographic, technological, and global conditions. (See
Exhibit 3-9.)
The two dimensions of environmental uncertainty include degree of change (stable or
dynamic) and degree of complexity (simple or complex). (See Exhibit 3-11.)
Stakeholders are any constituencies in the organization’s environment that are
affected by the organization’s decisions and actions. The most common ones are
customers, social and political action groups, competitors, trade and industry
associations, governments, media, suppliers, communities, shareholders, unions, and
employees. (See Exhibit 3-12.)
The four steps in managing stakeholder relationships are (1) identifying the
organization’s stakeholders; (2) determining the interests or concerns these stakeholders
might have; (3) deciding how critical each stakeholder is to the organization’s decisions
and actions; and (4) determining how to manage those stakeholders.
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Chapter 3 – Key Terms
omnipotent view of management
The view that managers are directly responsible for
an organization’s success or failure.
symbolic view of management
The view that much of an organization’s success or
failure is due to external forces outside managers’
control.
organizational culture
The shared values, principles, traditions, and ways
of doing things that influence the way
organizational members act.
strong cultures
Organizational cultures in which the key values are
intensely held and widely shared.
socialization
The process that helps employees adapt to the
organization’s culture.
workplace spirituality
A culture where organizational values promote
a sense of purpose through meaningful work
that takes place in the context of community.
external environment
Those factors and forces outside the organization
that affect the organization’s performance.
specific environment
Those external forces that have a direct impact on
managers’ decisions and actions and are directly
relevant to the achievement of the organization’s
goals.
general environment
Broad external conditions that may affect the
organization.
environmental uncertainty
The degree of change and complexity in an
organization’s environment.
environmental complexity
The number of components in an organization’s
environment and the extent of the organization’s
knowledge about those components.
stakeholders
Any constituencies in the organization’s
environment that are affected by the organization’s
decisions and actions.
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