2 The Management Environment

A photo shows a person holding up a board with the words, It doesn’t matter what an organization’s culture is like. I can be happy working anywhere.

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Learning Outcomes

  1. 2-1 Explain what the external environment is and why it’s important.

  2. 2-2 Discuss how the external environment affects managers.

  3. 2-3 Define organizational culture and explain why it’s important.

  4. 2-4 Describe how organizational culture affects managers.

  5. 2-5 Describe current issues in organizational culture.

Management Myth

Anyone who thinks they can be happy working in any type of organizational setting might be in for a big surprise! Even working at a company rated as “a best company to work for” won’t be for everyone. To be happy, don’t just “settle” for a job . . . find a workplace and a culture that “fit” you!

Wouldn’t it be nice to one day find a job you enjoy in an organization you’re excited to go to every day (or at least most days!)? Although other factors influence job choice, an organization’s culture can be an important indicator of “fit”—will I like working here and does this seem like a place where I can fit in and contribute? Organizational cultures differ and so do people. In the second part of this chapter, we’ll look at what organizational culture is and what elements make up an organization’s culture. Before that, however, we need to look at the external environment organizations face.

“Dynamic forces are sweeping across the globe, reshaping our lives and creating a wave of opportunities. . . .”1 No successful organization, or its managers, can operate without understanding the dynamic external environment that surrounds it. To better understand this external environment, we need to look at the important forces that are affecting the way organizations are managed today.

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