BRAC University

BRAC Business School

EMBA Program

Welcome

Management of Organization & Systems

(MGT 701)

Week 3 Lecture
 Today’s agenda……
Quick Recap of Lec 1 & 2

Organisational environment.
 Task environment
 General Environment

Organisational Culture
Meaning

Founder’s philosophy

Strong Vs Weak Culture

Consistency Vs Adaptability culture

Class Quiz 2
 What is management?
Management is the planning, organising, leading and
controlling of human and other resources to achieve
organisational goals effectively and efficiently.

Henri Fayol outlined the four managerial functions in his

book General Industrial Management (New York: IEEE
Press, 1984)

PPTs to accompany Contemporary Management 2e by Waddell, Jones & George 

© 2011 McGraw-Hill Australia Pty Ltd 1-3
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PPTs to accompany Contemporary Management 2e by Waddell, Jones & George 
© 2011 McGraw-Hill Australia Pty Ltd 1-4
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PPTs to accompany Contemporary Management 2e by Waddell, Jones & George 
© 2011 McGraw-Hill Australia Pty Ltd 1-5
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Levels of management

PPTs to accompany Contemporary Management 2e by Waddell, Jones & George 

© 2011 McGraw-Hill Australia Pty Ltd 1-6
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PPTs to accompany Contemporary Management 2e by Waddell, Jones & George 
© 2011 McGraw-Hill Australia Pty Ltd 1-7
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PPTs to accompany Contemporary Management 2e by Waddell, Jones & George 
© 2011 McGraw-Hill Australia Pty Ltd 1-8
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 Managerial roles and skills
Managerial role: the set of specific tasks that a person is
expected to perform because of the position he or she
holds in the organisation
Mintzberg identified three categories of roles (10):
decisional
informational
interpersonal

PPTs to accompany Contemporary Management 2e by Waddell, Jones & George 

© 2011 McGraw-Hill Australia Pty Ltd 1-9
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Lecture 3
Managing the environment
&
organisational culture

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 The organisational environment

The set of forces and conditions that

operate beyond an organisation’s
boundaries but affect a manager’s ability
to acquire and utilise resources

2-11
 Types of Organizational Environment
Internal Environment: Within the organization

External Environment : Beyond your organization’s

boundary.

Task Environment
General Environment

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 Task environment
– The set of forces and conditions that originate with
suppliers, distributors, customers and competitors

– Affect an organisation’s ability to obtain inputs and

dispose of its outputs

– Most likely daily, immediate and direct effect on

managers

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 The task environment: suppliers
Suppliers are individuals and organisations that provide an

organisation with the input resources that it needs to produce

goods and services.
Examples:
Dell computers uses Intel microcomputer chips.

Dell also uses software from Microsoft, IBM and Oracle.

Boeing uses aeroplane parts for its new 777 jetliner from 545

suppliers around the world.

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 The task environment: distributors

Distributors are organisations that help other

organisations sell their goods or services to customers.

Distributors can become very large and powerful.

Power of distributors is reduced if there are alternate

distribution options or competitors.

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 The task environment: customers
Customers are individuals and groups that buy the goods and

services that an organisation produces.

Customers can be segmented.

Customer numbers and preferences change.

Constant adaptation to customers is essential to survive.

Distinct national markets are merging to become a huge global

marketplace.

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 The task environment: competitors
Competitors are organisations that produce goods and services
that are similar to a particular organisation’s goods and
services, e.g. Dell’s competitors are Apple, Compaq, Sony and
Toshiba.
Rivalry between competitors is potentially the most threatening
force that managers must deal with.
Potential competitors may also exist. These are not currently in
the organisation’s task environment but could choose to enter it,
e.g. Mitsubishi manufactures cars but also some kitchen white
goods.
Competition reduces prices, e.g. Pepsi vs Coca-Cola.

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The general environment
Economic

Technological Sociocultural
Forces

Demographic Political and legal

Global

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 The general environment (cont.)

 The wide-ranging economic, technological, sociocultural,

demographic, political and legal, and global forces that
affect an organisation and its task environment

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 The general environment: economic forces

– Interest rates, inflation, unemployment, economic

growth and other factors affect the general health
and wellbeing of a nation or the regional economy of
an organisation.

– Managers usually cannot impact or control these

forces which have a profound impact on the firm.

– Managers pay close attention to what is occurring

in the national and regional economy and respond
accordingly.
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 The general environment: technological forces

Technology is the combination of skills and

equipment that managers use in the design,
production and distribution of goods and services

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 The general environment: technological
forces (cont.)

– Outcomes of changes in the technology that

managers use to design, produce or distribute goods
and services.

– Results in new opportunities or threats to managers.

– Often makes products obsolete very quickly.

– Can change how managers manage.

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 The general environment: socio-cultural forces

– Pressures emanating from the social structure of a country or

society or from the national culture
• Social structure: the arrangement of relationships
between individuals and groups in society
• National culture: the set of values that a society
considers important and the norms of behaviour that are
approved or sanctioned in that society
– Cultures and their associated social structures, values and
norms differ widely throughout the world.

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The general environment: demographic forces

– Outcomes of change in, or changing attitudes toward, the

characteristics of a population, such as age, gender,
ethnic origin, race, sexual orientation and social class

Examples:

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The general environment: political and legal forces

– Outcomes of changes in laws and regulations.

Examples: The deregulation of industries, the
privatisation of organisations and increased
emphasis on environmental protection

– Increases in laws and regulations increase the costs

of resources and limit the uses of resources that
managers are responsible for acquiring and using
effectively and efficiently.

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 The general environment: global forces
– Outcomes of changes in international relationships.

– Important opportunities and threats to managers

• The economic integration of countries through free-trade
agreements ASEAN, AUSFTA, EU, that decrease the
barriers to trade

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Organisational culture
The environment of an organisation
includes its culture.

Organisational culture is the set of

values, norms, standards for
behaviour and shared expectations
that influence the ways in which
individuals, groups and teams interact
with each other and cooperate to
achieve organisational goals.

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 Organisational culture (cont.)
Strong Culture Vs Weak Culture

When organisational members share an intense

commitment to cultural values, beliefs and routines, a
strong organisational culture exists.

When members are not committed to a shared set of

values, beliefs and routines, organisational culture is
weak.

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 Organizational Culture:
Consistency Vs Adaptability Culture
Consistency Culture:
Organizations don’t have the necessary flexibility, but rather
has a tendency to follow the rules and make slow, methodical
decisions.

Consistency culture uses an internal focus and a consistency

orientation for a stable environment.

Following the rules and being thrifty are valued, and the
culture supports and rewards a methodical, rational, orderly
way of doing things.

Rationality, Stability, Following the Rules, Order 30

 Organizational Culture:
Consistency Vs Adaptability Culture
Adaptability Culture:
Adaptability culture requires fast response and high‐risk
decision making.
Managers encourage values that support the company’s
ability to rapidly detect, interpret, and translate signals from
the external environment into new behaviour and responses.
Employees need the autonomy to make decisions and freely
act to meet new needs, and responsiveness to customers.
 Managers need to actively create change by encouraging
and rewarding creativity, experimentation, and risk taking.
Flexibility, Fast Decision‐making, Rapidly Detecting Changes
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 Organisational culture: values of the founder

Founders’ personal values and beliefs have a great

influence on the values, norms and standards of
behaviour that develop in the organisation.

Founders select managers with a like orientation to help

run the organisation.

New managers learn what values/beliefs are

‘appropriate’ to progress in the organisation and these
become norms that cascade down through the
organisation over time.
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Figure 3.4

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 Organisational socialisation
Organisational socialisation is the process by which
newcomers learn an organisation’s values and
norms and acquire the work behaviours necessary to
perform jobs effectively.

Most organisations have a socialisation program (e.g.

‘orientation’) to help employees ‘learn the ropes’.

The orientation or training program helps new recruits

learn how to behave and know what they should be
doing.
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 Ceremonies
Formal events that recognise incidents of importance
to the organisation as a whole and to specific employees.

Planned activity conducted for the benefits of an

audience.

Examples:

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 Stories and language
Stories:
Narrative based on true events that is frequently repeated.

Language:
Reveal behaviours that are valued by the organisation.

Include how people dress, the offices they occupy, the cars they
drive, and the degree of formality they use when they address
one another.

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 Symbols & Slogans
Symbols:
Object,act, or event that conveys
meaning
Slogans:
A phrase that succinctly expresses a
key corporate value.

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 Heroes

Heroes:
A figure who exemplifies the deeds, character,
and attributes of a strong corporate culture.

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 Week 5 Activities

Group Case Analysis-

Daylight Case: The environment and corporate
culture

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Any Question??????

Thanks a lot!!!!!

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