Page 73 - Fundamentals of Management Myths Debunked (2017)_Flat

2 Review

CHAPTER SUMMARY

2-1 Explain what the external environment is 2-3 Define what organizational culture is and
and why it’s important. explain why it’s important.

The external environment refers to factors, forces, situations, Organizational culture is the shared values, principles, tradi-
and events outside the organization that affect its performance. It tions, and ways of doing things that influence the way orga-
includes economic, demographic, political/legal, sociocultural, nizational members act. It’s important because of the impact
technological, and global components. The external environ- it has on decisions, behaviors, and actions of organizational
ment is important because it poses constraints and challenges employees.
to managers.
2-4 Describe how organizational culture
2-2 Discuss how the external environment affects managers.
affects managers.
Organizational culture affects managers in two ways: through
There are three ways that the external environment affects manag- its effect on what employees do and how they behave, and
ers: its impact on jobs and employment, the amount of environ- through its effect on what managers do as they plan, organize,
mental uncertainty, and the nature of stakeholder relationships. lead, and control.

dIsCussIon quEstIons

2-1 How much impact do managers actually have on an examples of environmental stability and environmental
organization’s success or failure? uncertainty.
2-2 Why do managers need an understanding of what hap- 2-6 “Businesses are built on relationships.” What do you
pens outside their organizations? Give examples of how think this statement means? What are the implications
changes in the external environment affect their job. for managing the external environment?
2-3 How has the changed economy affected what managers 2-7 Discuss why organizational culture plays a major role in
do? Find two or three examples in current business business operations and employee behaviors. Explain its
periodicals of activities and practices that organiza- impact on CEOs, managers, and employees.
tions are using. Discuss them in light of the changed 2-8 What are the steps by which organizational culture
environment. evolves over time?
2-4 Why is it important for managers to pay attention to 2-9 Discuss the impact of a strong culture on organizations
demographic trends and shifts? and managers.
2-5 Businesses operate in the external environment. Discuss 2-10 Pick two organizations that you interact with frequently
whether managers experience environmental stability in (as an employee or as a customer) and assess their cul-
their business operations. In this context, provide local ture according to the dimensions shown in Exhibit 2–4.

MyManagementLab

If your professor has assigned these, go to mymanagementlab.com for the following Assisted-graded writing
questions:

2-11 How can managers best deal with environmental 2-13 MyManagementLab Only – comprehensive writing
uncertainty? assignment for this chapter.
2-12 Explain how an organization’s culture can help it be suc-
cessful AND how it can keep it from being successful.

72