Page 62 - Fundamentals of Management Myths Debunked (2017)_Flat

CHAPTER 2 • The Management Environment 61
car, clothing, tools, or other physical assets). Some analysts have included the shar- omnipotent view
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ing of knowledge, expertise, skills, or time, as well. The concept behind the sharing of management
economy (or collaborative consumption) is putting underutilized assets to good use. The view that managers are directly responsible for
Asset owners “rent out” assets they’re not using to consumers who need those assets but an organization’s success or failure
who don’t want to or who can’t afford to purchase them. For instance, SnapGoods is a symbolic view
service through which individuals lend and borrow expensive household items, such as of management
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cameras, musical instruments, kitchenware, etc., for a fee. A new startup called Kitsplit The view that much of an organization’s success or
has set up a sharing arrangement between customers looking for sophisticated, high-end, failure is due to external forces outside managers’
control
creative-type equipment such as drones, Google Glass headsets, Oculus Rift systems, or
expensive cameras and production companies, studios, and individuals looking to lease
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their unused equipment for short time periods. Some economics experts have said
that these arrangements aren’t really “sharing” but better described as market-mediated,
since there’s a service or company that mediates the exchange between consumers. They
suggest that the arrangement is more like an “access economy,” because what consum-
ers are looking for is convenient access to assets they need but don’t have and they’re
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not concerned with developing a business or social relationship with the asset owner.
Whatever form or definition it takes, the concept is likely to remain a component of our
economic system.
The other external component we want to specifically look at is demographics. Why?
Changes and trends in this component tend to be closely linked to the workplace and
managing.

◂ ◂ ◂ From the Past to the Present ▸ ▸ ▸

Just how much difference does Symbolic view of management:
a manager make in how an • Manager’s ability to affect performance outcomes is con-
strained by external factors.
organization performs? • Managers don’t have a significant effect on organization’s
performance.
Management theory proposes two perspectives in answering • Performance is influenced by factors over which manag-
this question: the omnipotent view and the symbolic view.
ers have little control (economy, customers, governmen-
Omnipotent view of management: tal policies, competitors’ actions, etc.).
• Managers are directly responsible for an organization’s • Managers symbolize control and influence by developing
success or failure. plans, making decisions, and engaging in other manage-
• Differences in performance are due to decisions and rial activities to make sense out of random, confusing,
actions of managers. and ambiguous situations.
• Good managers: anticipate change, exploit opportunities, • Manager’s part in organizational success or failure is
correct poor performance, lead their organizations. limited.
• Profits c. Managers get the credit and rewards. In reality, managers are neither all-powerful nor help-
Profits T. Managers often get fired. less. But their decisions and actions are constrained. Ex-
• Someone—the manager—is held accountable for poor ternal constraints come from the organization’s external
performance. environment and internal constraints come from the
• This view helps explain turnover among college and pro- organization’s culture.
fessional sports coaches.
If your professor has assigned this, go to the Assignments
section of mymanagementlab.com to complete these dis-
Managers: cussion questions.

All-powerful Talk About It 1: Why do you think these two perspec-
or helpless? tives on management are important?

Talk About It 2: How are these views similar? Different?