Revision of the past lesson

The Evolution of Management Thinking

Classical
– Scientific, Bureaucratic and Administrative
Neo-classical (Human perspective)
– Human relation, HRP, Behavioral science
Modern Management Thinking
Management Science perspective
System Theory
Contingency theory
TQM
Learning Organization
TDWP
05/30/2024
1
Reminding question
Which theory came in the line of evolution of
management theories development to keep
the balance between the extremely
impersonal and the human side focused
theory of management?

Explain also the building blocks of this

theory of management?
05/30/2024 2
Chapter III: The Environment and Corporate Culture
of Management
External environment
The organization’s external environment can be conceptualized as
having two layers: general and task environments
• The general environment is the outer layer that is widely dispersed
and affects organizations indirectly. Such as: international,
technological, socio-cultural, economic, and legal-political.
• The task environment is closer to the organization and includes
the sectors that conduct day-to-day transactions with the
organization and directly influence its basic operations and
performance.
Internal
05/30/2024 environment Players within the organization 3
 The Environment of Management
General Env.
So
l ci o
na - cu
tio ltu
na
er Task Env. ral
Int rs
e Co
stom m
Cu pe
tit
Internal Env. or
Culture
yee
plo
Le

E m
t
ga

ic
Su Mgm

om
l/

p
po

pl ket

n
ie r
liti

Eco
r
rm
ca

o
l

b
La

l
05/30/2024 Technologica 4
 The Environment of Management
The General Environment
International
The international environment provides new competitors, customers,
and suppliers, socio-cultural, technological, and economic trends.
The most dramatic change in the international environment in recent
years is the shift of economic power to China and India
Managers who are used to think only about the domestic
environment must learn new rules to remain competitive in a global
world.

05/30/2024 5
 The Environment of Management…
Technological
The technological dimension includes scientific and
technological advancements in a specific industry as
well as in society at large.
Today, computer networks, Internet access, handheld
devices, videoconferencing capabilities, cell phones,
and laptops are the minimum tools for doing business.

05/30/2024 6
 The Environment of Management…
Socio-cultural
The socio-cultural dimension of the general
environment represents the demographic
characteristics as well as the norms, customs, and
values of the general population
Today’s demographic profiles are the foundation
of tomorrow’s workforce and consumers
05/30/2024 7
 The Environment of Management…
Economical
Consumer purchasing power, the unemployment rate, and
interest rates are part of an organization’s economic
environment.
Organizations today are operating in a global environment, the
economic dimension has become exceedingly complex and
creates enormous uncertainty for managers.
One significant recent trend in the economic environment is
the increasing frequency of mergers and acquisitions.
05/30/2024 8
 The Environment of Management…
legal-political
The legal-political dimension includes government
regulations at the local, state, and federal levels, as well as
political activities designed to influence company behavior.
Managers must also recognize a variety of pressure groups
that work within the legal-political framework to influence
companies to behave in socially responsible ways.

05/30/2024 9
 The Environment of Management…
Task Environment
Customer
As recipients of the organization’s output, customers are
important because they determine the organization’s
success
Customers today have greater power because of the
Internet, which presents threats as well as opportunities
for managers
How do you imagine the influence of customer to the
company? Direct or indirect? discuss
05/30/2024 10
 The Environment of Management…
Competitors
Each industry is characterized by specific
competitive issues
Competitive wars are being waged worldwide in
all industries
Samsung and Nokia continue to battle it out for
the electronic product market.
05/30/2024 11
 The Environment of Management…
Supplier
Many companies are using fewer suppliers and trying
to build good relationships with them so that they will
receive high-quality parts and materials at lower prices.
Managers looking for cooperation is the key to save
money, maintain quality, and speed up products to
market.

05/30/2024 12
 The Environment of Management
Labor market
Labor market forces affect organizations right now include:
(1) the growing need for computer-literate knowledge workers;
(2) the necessity for continuous investment in HR
(3) the effects of international trading blocs, automation,
outsourcing, and shifting facility location upon labor
dislocations, creating unused labor pools in some areas and
labor shortages in others.

05/30/2024 13
 The Environment Management…
Internal Environment
The internal environment is composed of current employees,
management, and corporate culture
The internal environment within which managers work includes
corporate culture, production technology, organization
structure, and physical facilities. Of these, corporate culture
surfaces as extremely important to competitive advantage.
The internal culture must fit the needs of the external
environment and company strategy.
05/30/2024 14
 The Internal Environment: Corporate Culture
The concept of culture has been of growing
concern to managers since the 1980s
Culture is defined as the set of key values, beliefs
understandings, and norms shared by members of
an organization
The concept of culture helps managers understand
the hidden, complex aspects of organizational life
05/30/2024 15
 The Internal Environment: Corporate Culture…

Corporate Culture
The set of beliefs, values, and norms, together with symbols
like dramatized events and personalities, that represent the
unique character of an organization, and provides the context
for action in it and by it
A set of understandings or meanings shared by a group of
people that are largely tacit among members and are clearly
relevant and distinctive to the particular group which are also
passed on to new members
May 30, 2024 16
 The Internal Environment: Corporate Culture…

• Corporate Culture

Recently, organizational culture has been

described as the shared values, principles,
traditions, and ways of doing things that
influence the way organizational members act
May 30, 2024 17
 Corporate Culture…

Establishing and Maintaining culture

Top
management
Philosophy Selection Organization’s
of founders criteria culture
Socialization

You might think of OC as the organization’s DNA—invisible to the

naked eye, yet a powerful template that shapes what happens in the
workplace
May 30, 2024 18
 Corporate Culture…
• The Iceberg of organizational culture/levels/
Artifacts
1. Physical structures,
of OC
Rituals, ceremonies
Stories Language
2. Expressed values and beliefs
discerned from how people explain and justify

3.Deeper Beliefs, Values, Assumptions

May 30, 2024
subconsciously guide behavior and decisions 19
 Corporate Culture…
The observable part of OC
Rituals are the programmed routines of daily organizational life that
play up the organization’s culture Ex. Wedding, Funeral,
Thanksgiving, etc.
Ceremonies are more formal artifacts than rituals
Organizational culture is deciphered indirectly through artifacts
Artifacts are the observable symbols and signs of an organization’s
culture.
The way visitors are greeted,
The physical lay-out
How employees are rewarded
May 30, 2024 20
 Corporate Culture…
The invisible part of OC
Assumptions represent the deepest part of organizational
culture because they are unconscious and taken for granted.
Assumptions are the shared mental models the broad
worldviews or theories-in-use that people rely on to guide
their perceptions and behaviors
We can’t see an organization’s cultural assumptions, values,
and beliefs directly
May 30, 2024 21
 Corporate Culture…
Types of Organizational Culture
1. Strong Vs. Weak culture
A strong OC exists when most employees across all subunits hold the
dominant values.
The values are also institutionalized through well-established
artifacts, thereby making it difficult for those values to change.
Is internally consistent
Is widely shared
Finally, strong cultures are long lasting.
Strong OC can be traced back to the beliefs and values established by
the
May 30, company’s founder
2024 22
 Corporate Culture…
Weak culture
Companies have weak cultures when the dominant
values are short lived, poorly communicated, and
held mainly by a few people at the top of the
organization
What is the relationship between strong culture and
organizational performance?
Studies have indicated that modest +ve relationship23
May 30, 2024
 Corporate Culture…
Types of Organizational Culture
2. Soft vs hard culture
Soft work culture can emerge in an organization where the
organization pursues multiple and conflicting goals
Consensus decision making
Participation and equality among members.
A warm organizational climate
A hard culture involve Initiating structure, accountability,
direction, acceptability of conflict
May 30, 2024 24
 Corporate Culture…
Types of Organizational Culture
3. Formal vs informal culture
The work culture of an organization, to a large extent, is
influenced by the formal components of organizational culture.
Roles, responsibilities, accountability, rules and regulations are
components of formal culture
Informal cultures are those out of the formal components of the
organization

May 30, 2024 25

 Corporate Culture…
4. Adaptive Organizational Cultures
An adaptive culture focuses on the changing needs of
customers
Focused outwardly rather than inwardly
The underlying mental model is that the organization will
survive and succeed through continuous change
Organizations with adaptive cultures are readily identifiable
by their uncanny ability to shift directions with the market
May 30, 2024 26
Environment adaptation Vs. Internal integration

Competitive Learning
Environmental
adaptation
Culture culture

Bureaucratic Participative
culture culture
Low
Internal integration
May 30, 2024 27
 Corporate Culture…
Bureaucratic culture
A type of organizational culture characterized by low
environmental adaptation and low internal integration
Inflexibility
Rigid regulations & rules
High level of centralization
Affirmative leadership style
May 30, 2024 28
 Corporate Culture…
Competitive Culture
A type of organisational culture characterized by high environmental
adaptation and low internal integration
High flexibility
Low integration
Contract relations between employee and the organization
Low loyalty
Low cultural identity
Achieving to quantitative objectives
May 30, 2024 29
 Corporate Culture…
Participative Culture
A type of organisational culture characterized by low environmental adaptation
and high internal integration
Low flexibility
High integration
Loyalty
Personal Commitment
Team working
High level of society acceptance
Tendency to satiability
May 30, 2024 30
 Corporate Culture…
Learning Culture
A type of organisational culture characterized by high environmental adaptation
and high internal integration
Engaged in sustainable change
Knowledge expansion
Sensitive and responsive to external changes
Competitive advantage
Service development
Encourage innovation, creativity and learning
Organizational commitment
May 30, 2024 31
 Corporate Culture…
Strategies for strengthening organizational culture
Actions of founders and leaders
Introducing culturally consistent rewards
Maintaining a stable workforce
Managing the cultural network
an effective network of cultural transmission is necessary to
strengthen the company’s underlying assumptions, values,
and beliefs
Selecting and socializing employees
May 30, 2024 32
 Cultural Leadership
A cultural leader uses signals and symbols to influence corporate culture.
Cultural leaders influence culture in two key areas:
1. The cultural leader articulates a vision for the organizational culture
that employees can believe in.
The leader defines and communicates central values that employees
trust
2. The cultural leader heeds the day-to-day activities that strengthen the
cultural vision.
The leader makes sure that work procedures and reward systems match
and reinforce the values.
05/30/2024 33
 Cultural Leadership…
If one wishes to distinguish leadership from management or
administration, one can argue that leadership creates and
changes cultures, while management and administration act
within a culture
Do leaders shape the organizational culture or vise versa?
It is a bit of both
Even though, there is an absence of cause and effect in the
literature, there is enough in current theory to take the views
that leaders shape culture, and cultures shape leaders behavior
05/30/2024 34
 The cultural Environment
Which one do you think is difficult to get ? information on
legal, political, economic or cultural information?
Legal political, and economic differences among countries
are obvious.
Getting information about cultural difference is not quite
easy
The primary reason is it’s difficult for natives to explain their
countries unique cultural characteristics to someone else
May 30, 2024 35
 Cultures of some countries
Dimensions Low/short Medium High/long
Individualism Mexico, Japan USA, Canada
Thailand
Power distance USA, Sweden Italy, Japan Singapore France

Uncertainty Singapore USA UK Italy France

avoidance
Time USA, Canada ????? China, Japan
May 30, 2024 36
 Discussion Question
If someone asks certain group to change their way
of thinking or perceiving, and that way is based on
what they have learned in a group that they belong
to. What reaction do you expect from the group?
They will resist the change because they do not
want to deviate from their group even if privately
individuals think that the group is wrong
May 30, 2024 37