2 Chapter The Management Environment © Pearson Education Limited 2015 2-1 Learning Outcomes • Explain what the external environment is and why it’s important • Discuss how the external environment affects managers • Define what organizational culture is and why it’s important • Describe how organizational culture affects managers © Pearson Education Limited 2015 2-2 2.1 Explain what the external environment is and why it’s important © Pearson Education Limited 2015 2-3 External Environment Factors, forces, situations, and events outside the organization that affect its performance © Pearson Education Limited 2015 2-4 Components of the External Environment © Pearson Education Limited 2015 2-5 How Has the Economy Changed? • Turmoil in mortgage markets (TT chấp xaó trộn) • Spread to businesses • “Great Recession” “Đại suy thoái” • Foreclosures (sự tịch thu tài sản, xiết nợ), unemployment, public debt, and social problems © Pearson Education Limited 2015 2-6 Economic Inequality Harris Interactive Poll: Only 10 percent of adults think economic inequality is “not a problem at all.” © Pearson Education Limited 2015 2-7 How Much Difference Does a Manager Make? Managers: All powerful OR helpless? © Pearson Education Limited 2015 2-8 Demographics Demography is destiny Age Cohorts • • • • Baby Boomers Gen X Gen Y Post-Millenials © Pearson Education Limited 2015 2-9 2.2 Discuss how the external environment affects managers © Pearson Education Limited 2015 2-10 2.3 Define what organizational culture is and explain why it’s important © Pearson Education Limited 2015 2-16 What is Organizational Culture? © Pearson Education Limited 2015 2-17 Organizational Culture Shared values, principles, traditions, and ways of doing things that influence the way an organization’s members act © Pearson Education Limited 2015 2-18 Culture is: Perceived Descriptive Shared © Pearson Education Limited 2015 2-19 Dimensions of Culture © Pearson Education Limited 2015 2-20 © Pearson Education Limited 2015 2-21 2.4 Describe how organizational culture affects managers © Pearson Education Limited 2015 2-22 How Does Organizational Culture Affect Managers • Effect on what employees and how they behave • Effect on what managers © Pearson Education Limited 2015 2-23 How Does Culture Affect What Employees Do? Strong cultures: cultures in which the key values are deeply held and widely shared © Pearson Education Limited 2015 2-24 Strong Cultures Can: • Substitute for formal rules and regulations • Create predictability, orderliness, and consistency © Pearson Education Limited 2015 2-25 Acclimating to Corporate Culture © Pearson Education Limited 2015 2-26 How Does Culture Affect What Managers Do? © Pearson Education Limited 2015 2-27 Company Values Affect Managers’ Behavior “Ready-aim-fire” versus “Ready-fire-aim” © Pearson Education Limited 2015 2-28 Managerial Decisions Influenced by Culture © Pearson Education Limited 2015 2-29 © Pearson Education Limited 2015 2-30