Chapter 3: Environment and organisational culture: the constraints

Question 1

What are the views of management?

Answer 1

• Omnipotent View of Management - the view
that managers are directly responsible for an
organisation’s success or failure.
• Symbolic view of Management - the view that
much of an organisation’s success or failure is
due to external forces outside managers’
control.

Question 2

What is the external environment?

Answer 2

• External Environment - those factors and forces
outside the organisation that affect its performance.
• Components of the External Environment
– Specific environment: External forces that have a direct
and immediate impact on the organisation, such as
customers, suppliers, competitors and pressure groups.
– General environment: Broad economic, socio-cultural,
political/legal, demographic, technological, and global
conditions that may affect the organisation

Question 3

Who are the organization’s stakeholders?

Answer 3

Stakeholders - any constituencies in the organisation’s
environment that are affected by an organisation’s
decisions and actions.
• Employees
• Customers
• Shareholders
• Suppliers
• Competitors
• Government

Question 4

What is organisational culture?

Answer 4

The shared values,
principles, traditions, and ways of doing things
that influence the way organisational
members act.

Question 5

What are the dimensions of organizational culture?

Answer 5

• Attention to Detail
- Degree to which employees are expected to exhibit precision, analysis and attention to details.
• Outcome Orientation
- Degree to which manager’s focus on results or outcomes rather than on how these outcomes are achieved.
• People Orientation
- Degree to which management decisions take into account the effects on people in the organization.
• Team Orientation
- Degree to which work is organized around teams rather than individuals.
• Aggressiveness
- Degree to which employees are aggressive and competitive rather than cooperative.
• Stability
- Degree to which organizational decisions and actions emphasizes maintaining the status quo.
• Innovation and Risk Taking
- Degree to which employees are encouraged to be innovative and to take risks.

Question 6

Where does Culture come from?

Answer 6

• Organization founder.
• Vision and Mission.
• Past Practices.
• Top Management Behaviours.
• Socialisation – The process that helps employees adapt to the organization’s culture.

Question 7

How do employees learn culture?

Answer 7

• Stories - Narratives of significant events or
actions of people that convey the spirit of the
organisation, e.g. organisation founders, rule
breaking, reaction to past mistakes etc.
• Rituals – repetitive sequences of activities
that express and reinforce the important
values and goals of the organisation.
• Material Artifacts and Symbols – physical
assets distinguishing an organisation. Convey
the kinds of behavior that are expected, e.g.
risk taking, participative, authoritative, etc.
• Language – Acronyms and jargons of terms,
phrases, and word meanings specific to an
organisation. Acts as a common denominator
that bonds members