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• Contrast the actions of managers according to the
omnipotent and symbolic views
• Describe the constraints and challenges facing managers in
today’s external environment
• Discuss the characteristics and importance of organizational
culture
• Describe current issues in organizational culture

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 Constraints on Managerial Discretion

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 The External Environment:
Constraints & Challenges
• External Environment - those factors & forces outside the
organization that affect its performance.

• Components of the External Environment

– Specific environment: External forces that have a direct &
immediate impact on the organization
– General environment: Broad economic, socio-cultural,
political/legal, demographic, technological & global conditions
that may affect the organization

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Exhibit 2-2: Components of External Environment

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• Environmental Uncertainty - the degree of change
& complexity in an organization’s environment.

• Environmental Complexity - the number of

components in an organization’s environment & the
extent of the organization’s knowledge about those
components.

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 Who Are Stakeholders?

• Stakeholders - any *constituencies in the

organization’s environment that are affected by an
organization’s decisions & actions.

*A group of voters in a specified area who elect a representative to a legislative body.

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 Organizational Stakeholders

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 Managing Stakeholder Relationships

1. Identify the organization’s external stakeholders.

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

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 What Is Organizational Culture?

• Organizational Culture - The shared values,

principles, traditions, and ways of doing things that
influence the way organizational members act. In
most organizations, these shared values and
practices have evolved over time and determine to
a large extent, how “things are done around here.”

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Exhibit 2-5: Dimensions of Organizational Culture

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• Strong Cultures - Organizational cultures in
which key values are intensely held and widely
shared.

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• Decision –
Making a choice from two or more alternatives.

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 Decision-Making Process

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 Decisions Managers May Make

Copyright © 2016Eleventh
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 Decisions Managers May Make

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