Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

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

• 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
2-2
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.
2-3
Constraints on Managerial Discretion
2-4
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
2-5
Exhibit 2-2: Components of External Environment
2-6
• 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.
2-7
Exhibit 2-3: Environmental Uncertainty Matrix
2-8
Who Are Stakeholders?
• Stakeholders - any constituencies in the

organization’s environment that are affected by an
organization’s decisions & actions.
2-9
Organizational Stakeholders
2-10
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.
2-11
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.”
2-12
Exhibit 2-5: Dimensions of Organizational Culture
2-13
• Strong Cultures - Organizational cultures in
which key values are intensely held and widely
shared.
2-14
Exhibit 2-6: Contrasting Organizational Cultures
2-15
Exhibit 2-7: Strong vs. Weak Cultures
2-16
• Decision –
Making a choice from two or more alternatives.
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Edition by Stephen P. Robbins & Mary Coulter ©2012 Pearson Education, Inc. publishing as Prentice Hall
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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 correct
priority 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.
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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?
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Decisions Managers May Make
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Decisions Managers May Make
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Making Decisions: Rationality
• 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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Making Decisions: Bounded Rationality
• 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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Making Decisions: The Role of Intuition
• 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
• Evidence-based management (EBMgt) – the

systematic use of the best available evidence to
improve management practice.
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Management, Eleventh Edition by Stephen P. Robbins & Mary Coulter

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

c. publishing as Prentice Hall 2-1

• Components of the External Environment

• Environmental Complexity - the number of

• Stakeholders - any constituencies in the

1. Identify the organization’s external stakeholders.

• Organizational Culture - The shared values,

– Problem – an obstacle that makes it difficult to

– Every decision starts with a problem, a difference

– E.G – Amanda decides that memory and

• Step 3: Allocate Weights to the Criteria

• Step 4: Develop Alternatives

• Step 5: Analyze Alternatives

• Step 6: Select an Alternative

• Step 7: Implement the Alternative

• Step 8: Evaluate Decision Effectiveness

• Rational Decision-Making – describes choices that

• Bounded Rationality – decision-making that’s

• Intuitive decision- making

• Evidence-based management (EBMgt) – the

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