Challenges faced by a manager in 21 st

century.

Are Managers sonly responsible for an

organizations success or failure?

Managerial Challenges
Tata Nano Singur Controversy
Consumer Boycotts
Terrorist attack on Mumbai
Hotel Taj , Oberoi, trident

The Manager: Omnipotent or Symbolic?

Omnipotent View of Management
Managers are directly responsible for an
organizations success or failure.
The quality of the organization is determined by the
quality of its managers.
.

The Manager: Omnipotent or Symbolic?

Symbolic View of Management
Much of an organizations success or failure is due to
external forces outside of managers control.
The ability of managers to affect outcomes is
influenced and constrained by external factors.

The economy, customers, governmental policies,

competitors, industry conditions,
technology, and the actions of
previous managers

Synthesis

Managers are held accountable for

organizations performance yet it is difficult
attribute good or poor performance directly
their influence on the organization

an
to
to

Parameters of Managerial Discretion

Defining the External Environment

External Environment
Those factors and forces outside the organization that
affect the organizations performance.

Components of the External Environment

Specific environment: external forces that have a
direct and immediate impact on the organization.
General environment: broad economic, sociocultural, political/legal, demographic, technological,
and global conditions that may affect the organization.

The External Environment

Fundamental Changes Facing Managers

How the Environment Affects Managers

Environmental Uncertainty
The extent to which managers have knowledge of
and are able to predict change their organizations
external environment is affected by:

Complexity of the environment: the number of components

in an organizations external environment.

Degree of change in environmental components: how

dynamic or stable the external environment is.

The Changing Organization

How The Managers Job Is Changing

Changing technology
Changing Security Threats
Increased emphasis on organizational and
Managerial ethics
Increased Competitiveness.

How The Managers Job Is Changing

The Increasing Importance of Customers
Customers: the reason that organizations exist
Managing customer relationships is the responsibility of all
managers and employees.
Consistent high quality customer service is essential for
survival.

Innovation
Doing things differently, exploring new territory, and
taking risks

Managers should encourage employees to be aware of and

act on opportunities for innovation.

Stakeholder Relationships

Stakeholders
Any constituencies in the organizations environment
that are affected by the organizations decisions and
actions

Stake holder analysis

Do a stake holder analysis for you organization

Organizational Stakeholders

Why Manage Stakeholder Relationships?

Why Manage Stakeholder Relationships?

It can lead to improved organizational performance.

Its the right thing to do given the interdependence

of the organization and its external stakeholders.

Managing Stakeholder Relationships

1. Identify the organizations external
stakeholders.
2. Determine the particular interests and
concerns of the external stakeholders.
3. Decide how critical each external stakeholder
is to the organization.
4. Determine how to manage each individual
external stakeholder relationship.

Assignment-Stakeholder analysis refined.