robbins mgmt11 ppt02(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


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.


Constraints on Managerial Discretion


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


Exhibit 2-2: Components of External Environment


• 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.


Exhibit 2-3: Environmental Uncertainty Matrix


Who Are Stakeholders?

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


Organizational Stakeholders


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.


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.”


Exhibit 2-5: Dimensions of Organizational Culture


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


Exhibit 2-6: Contrasting Organizational Cultures


Exhibit 2-7: Strong vs. Weak Cultures


• Decision –

Making a choice from two or more alternatives.

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Copyright © 2016 by Pearson Education, Inc.


Decision-Making Process

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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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• 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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• 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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Important Decision Criteria

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• Step 4: Develop Alternatives

– List viable alternatives that could resolve the problem

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

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Possible Alternatives

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

– The alternative with the highest total weight is chosen.



Evaluation of Alternatives

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• 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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• 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?



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



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.



Making Decisions: The Role of Intuition

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• Intuitive decision- making

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



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.


robbins mgmt11 ppt02(1)

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