robbins mgmt11 ppt02(1)

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-1

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall

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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

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-3

The Manager: Omnipotent or Symbolic?

• 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.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-4

Constraints on Managerial Discretion

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-5

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

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-6

Exhibit 2-2: Components of External Environment

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-7

• 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.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-8

Exhibit 2-3: Environmental Uncertainty Matrix

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-9

Who Are Stakeholders?

• Stakeholders - any constituencies in the organization’s environment that are affected by an organization’s decisions & actions.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-10

Organizational Stakeholders

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-11

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.

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-12

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.”

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-13

Exhibit 2-5: Dimensions of Organizational Culture

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-14

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

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-15

Exhibit 2-6: Contrasting Organizational Cultures

Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-16

Exhibit 2-7: Strong vs. Weak Cultures

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• Decision –

Making a choice from two or more alternatives.

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Decision-Making Process

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-19

The Decision-Making Process

• Step 1: Identify a Problem

– Problem – an obstacle that makes it difficult to achieve a desired goal or purpose.

– Every decision starts with a problem, a difference b/w an existing and a desired condition.

– Example – Amanda is a sales manager whose reps need new laptops.

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-20

The Decision-Making Process

• Step 2: Identify Decision Criteria

– Decision criteria are factors that are important (relevant) to resolving the problem.

– E.G – Amanda decides that memory and storage capabilities, display quality, battery life, warranty, and carrying weight are the relevant criteria in her decision.

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-21

The Decision-Making Process

• Step 3: Allocate Weights to the Criteria

– If the relevant criteria aren’t equally important, the decision maker must weight the items in order to give them the correctpriority in the decision.

– The weighted criteria for our example

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-22

Important Decision Criteria

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The Decision-Making Process

• Step 4: Develop Alternatives

– List viable alternatives that could resolve the problem

– Example – Amanda, identifies eight laptops as possible choices.

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-24

Possible Alternatives

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-25

The Decision-Making Process

• Step 5: Analyze Alternatives

– Appraising each alternative’s strengths and weaknesses.

– An alternative’s appraisal is based on its ability to resolve the issues related to the criteria & criteria weight.

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The Decision-Making Process

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• Step 6: Select an Alternative• Choosing the best alternative

– The alternative with the highest total weight is chosen.

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Evaluation of Alternatives

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The Decision-Making Process

• Step 7: Implement the Alternative• Putting the chosen alternative into action• Conveying the decision to and gaining commitment

from those who will carry out the alternative

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-29

The Decision-Making Process

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• Step 8: Evaluate Decision Effectiveness

– The soundness of the decision is judged by its outcomes.

– How effectively was the problem resolved by outcomes resulting from the chosen alternatives?

– If the problem was not resolved, what went wrong?

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-30

Decisions Managers May Make

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Decisions Managers May Make

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Making Decisions: Rationality

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• Rational Decision-Making – describes choices that are logical and consistent while maximizing value.

• Assumptions of Rationality– The decision maker would be fully objective and logical

– The problem faced would be clear and unambiguous– The decision maker would have a clear and specific goal

and know all possible alternatives and consequences and consistently select the alternative that maximizes achieving that goal

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-33

Making Decisions: Bounded Rationality

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• Bounded Rationality – decision-making that’s rational, but limited (bounded) by an individual’s ability to process information.

• Satisfice – accepting solutions that are “good enough.”

• Escalation of commitment – an increased commitment to a previous decision despite evidence it may have been wrong.

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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall 2-34

Making Decisions: The Role of Intuition

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• Intuitive decision- making

– Making decisions on the basis of experience, feelings, and accumulated judgment.

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What Is Intuition?

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Making Decisions: The Role of Evidence-Based Management

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• Evidence-based management (EBMgt) – the systematic use of the best available evidence to improve management practice.

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