Influence Of the External

Environment & the

Organization’s Culture
Presented by:
• M. Saad Qureshi
• Sheeraz Ali
• Sumaiya
• Zainab
• Wajahat
Who Is a manager?

 The manager is a person who is responsible for managing a

team or organization to achieve specific goals and
objectives.
Views of Management

 Omnipotent View
 Symbolic View
Omnipotent View

 The omnipotent view is a management perspective that

believes that managers are all-powerful and are solely
responsible for the success or failure of an organization.
Examples Of Omnipotent View:

 The CEO of a company takes all the credit for its success,
even though it was achieved by the hard work of
employees.
 A manager blames the failure of a project on the team,
instead of taking responsibility for poor leadership and
management.
 A leader in a sports team is seen as responsible for the
team's wins and losses, regardless of the contributions of
individual players.
Symbolic View:

 The symbolic view is a management perspective that

emphasizes the importance of external factors, such as
culture, values, and societal trends, in shaping an
organization's success or failure
Examples Of Symbolic View:

 Fashion and luxury goods manufacturing companies.

 NGOs
 Hospitals
 Technology Sectors
 Differences

Omnipotent View Symbolic View

 The success or failure of an  Managers are not personally accountable
organization directly depends on its for the success or failure of an
managers. organization.

 The caliber of an organization's

 As managers do not have complete
control, the organization's quality is not
managers determines that quality.
based just on the caliber of its
 The organization's objectives are management.
influenced by the managers'  The organization's goals are not impacted
performance. by the managers' performance.
 Managers have the capacity to  External factors influence and constrain
succeed or fail based on their managers' ability to influence results.
performance.
Reality Suggest a Synthesis
 Managers are neither powerless nor omnipotent in reality.
 Every organization has internal limitations that limit a
manager's alternatives for making decisions. These
internal limitations result from the company's culture. The
environment in which the organization operates is another
source of external limitations.
 These limitations do not mean that a manager has no
options. As they plan, organize, lead, and control,
managers may be able to alter and influence their culture
and environment, so increasing their latitude.
The External Environment

 Environment
 Environmental Uncertainty
 Environmental Uncertainty Matrix
Environment

 Institutions or outside forces that could have an impact on

how well an organization performs.
Environmental Uncertainty
 Environmental uncertainty refers to the lack of
predictability and control that individuals or organizations
face in their external environment. It means that they
cannot accurately predict future events and developments
in the environment, and cannot control the outcome of
those events.
Dimensions of Environmental
Uncertainty
1. Degree of change (Stable and Dynamic)
 Stable environment: a small, family-owned grocery store
that has been operating in the same location for decades,
with a predictable customer base and little change in
competition.
 Dynamic environment: a tech startup in a rapidly evolving
industry, where new competitors and disruptive
technologies emerge frequently, and customer demands
and preferences change quickly.
Dimensions of Environmental
Uncertainty
1. Degree of complexity (Complex and simple)
 Simple environment: a small, rural farming community
with a few key industries and a relatively homogeneous
population.
 Complex environment: a large, diverse city with multiple
industries, a rapidly changing demographic makeup, and
complex political and economic factors at play.
Environmental Uncertainty Matrix
The environmental uncertainty matrix is a tool that helps
individuals or organizations assess the level of uncertainty
they face in their external environment.
Organizational environment

Organizational environments are composed of forces or

institutions surrounding an organization that affect
performance, operations, and resources. It includes all of
the elements that exist outside of the organization's
boundaries and have the potential to affect a portion or all
of the organization.
Organizational Environment have Two Plan or Level:
 1.Monitoring the General Environment
 2.The Specific Environment
Monitoring the General Environment
The General Environment includes everything outside the
organization. Managers must consider these factors while making
their plan. It includes a number of different components.

 1.Political Factors
Political factors include government influences such as changes
in trade tariffs and tax policies that may impact a business.
 2. Economic conditions
Economic conditions and factors can include things such as
unemployment rates, consumers' disposable income, interest
rates and gross domestic product.
 3. Sociocultural Factors
Some sociocultural factors include population size and cultural trends as
well as demographics like age, gender and race. When advertising to
consumers, businesses keep their target demographics in mind to find
ways to best reach their audience.
 4.Technological Factors
Technology often helps businesses improve their own internal processes,
but technological developments that occur in the general environment
also shape how businesses operate. Depending on the organization.
 5.Demographic Factors
 Demographic factors for businesses include age, sex, income, education
level, and occupation. We will discuss how each of these factors impacts
business and commerce.
 6.Global Factors
The global component encompasses those issues associated
with globalization and a world economy.
e.g. natural disaster, terrorism, storm etc.
The Specific Environment

Specific environment refers to those external forces that affect an organization

directly.
 1.Customers
Organizations exist to meet the needs of customers through which they earn
large some of profit.
 2.suppliers
Organizations need different resources such as raw materials, good and services
etc. to conduct their operations. Therefore, they purchase these resources from
various individuals and organizations known as suppliers.
The term supplier also includes providers of financial and labor inputs such as
(banks, insurance companies, pension fund, labor union, universities, local labor
market etc.)
 3.competitors
Competitors refers to those organizations that either offer or have a
potential to offer rival products and services. Competitors in term
of better pricing, new products, quality services etc. represent
environmental force that manager must monitor along with the
competitive scene for potential newcomers.
 4.Pressure Group
Pressure group refers to the special-interest group that attempt to
influence the action of organization. Such groups have the potential
to influence the success of organization therefore managers have to
be careful in their decisions and actions.
 5.Government
Federal state, and local government influence what organization
can and cannot do. Organizations spend a great deal of time and
money to meet government regulation. But the effect of these
regulations go beyond time and money. They also reduce managerial
discretion. They limit the choices available to managers.
Managing the Environment
 Organization are not self-contained or self-sufficient. They
interact with and are influenced by their environment.
Organizations depend on their environment as a source of inputs
and as a recipient of its outputs. Organizations must also abide
by the laws and regulations and respond to groups that challenge
the organization’s actions. However, while the environment
constrains managers. It certainly doesn’t tie their hands. An
organization and its environment exchange information between
themselves. Organizations need information about the external
environment for planning, decision-making and control purposes.
Hence, they analyze the environment’s variables along with
studying their behavior and changes.
Organizational Culture

 Organizational Culture
 Dimensions of Organizational Culture
What is Organizational Culture?

Organizational Culture represents the collective values,

beliefs and principles of Organizational members and is a
product of factors, such as history, product, market,
technology strategy, type of employees, management style
And national culture.
Dimensions of Organizational Culture
Dimensions of Organizational Culture
Research suggests that there are seven Dimensions which in
total, capture the essence of an organization's culture.

 Innovation and Risk-taking:

The degree to which employees are encouraged to be
innovative and to take risks.
 Attention to Detail:
The degree to which employees are expected to exhibit
precision, analysis and attention to detail.
 Outcome Orientation:
The degree to which managers focus on results or outcomes
rather than on techniques and process used to achieve these
outcomes.
 People Orientation:
The degree to which management decisions take into
consideration the effect of decisions on people within the
organization.
 Team Orientation:
Which work activities are organized around terms rather
than individuals.
 Aggressiveness:
Which people are aggressive and competitive rather than
easygoing and cooperative.
 Stability:
Which organizational activities emphasize maintaining the
status quo in contrast to growth or change.
Contrasting Organizational Culture

 Organization A
 Organization B
 Strong Versus Weak Cultures
Contrasting Organizational Culture
 Organization A
• Risk taking & change discouraged.
• Creativity discouraged.
• Close managerial supervision.
• Work designed around individual
employees.

 Organization B
• Risk taking & change rewarded.
• Creativity and innovation rewarded.
• Management trusts employees.
• Work design around teams.
Strong Versus Weak Culture

Strong Culture Weak Culture

 Values widely shared.  Values limited to a few people-
usually top management
 Culture conveys consistent
messages about what's important.  Culture sends contradictory
messages about what's important
 Most employees can tell stories
about company history heroes.  Employees have little knowledge of
company history or heroes
 Employees strongly identify with
culture.  Employees have little
identification with culture
 Strong connection between shared
values and behaviors.  Little connection between shared
values and behaviors
How employees learn culture and how it
affects them.
Employees learn an organisation’s culture in a number of
ways.
Following are some common amongst them:
 Stories:
• Stories means employee free to know the background of
workplace.
• Narrative of significant events. Like Achievement, Success
& Losses
• Example: KIT (Kirirom Institute of Technology)
 Rituals:
• Rituals are repetitive Sequence of activities that express &
reinforce the important values of company.
• Example: Awards ceremony , Eid Milan party
 Material Artifacts & Symbols:
• Material symbols means Organizations Personality the
Layout of Organization facilities
• How it shows to you such as Uniform, casual, how
employee dress
• types of Automobile provided to top management
 Language:
• Verbal communication identify the culture of Company
• Example of Hotel employee they use own Abbreviation Like
DND (do not disturb) MUR (make up room)
• other example of Microsoft in office they use own
vocabulary
 Thank You for
taking time for
listening to our
presentation!