Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020 1
Managing the Environment and the
Organization’s Culture
•Contemporary Management
The Manager: Omnipotent or Symbolic?
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020 2
Symbolic View Of Management:
The view that much of an organization’s success
or failure is due to external forces outside
managers’ control.
Omnipotent view of management: The
view that managers are directly responsible for an
organization’s success or failure.
Managerial
Constraints
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020 3
Managers are neither all-
powerful nor helpless. But
their decisions and actions
are constrained.
Managerial
Decision
Making
Organizational
Culture
Organizational
Environment
External Environment
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020 4
Those factors and forces outside the organization that affect it’s performance.
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The External Environment Elements
Contemporary Management – Dr. Marwan El Messiry –Eslsca School of Business –MBA Program 2020 5
Economic –
Encompasses factors such as interest rates,
inflation, changes in disposable income,
stock market fluctuations, and business cycle
stages.
Demographic –
Concerned with trends in population
characteristics such as age, race,
gender, education level, geographic
location, income and family
composition.
Political/Legal –
Concerned with federal, state and local laws,
and global laws.
Technological –
Concerned with scientific or
industrial innovations.
The Sociocultural –
Concerned with societal and cultural factors
such as values, attitudes, trends, traditions
and lifestyles, beliefs, tastes, and patterns of
behavior.
Global –Encompasses issues
associated with globalization and a
world economy.
The Demographic Environment
Contemporary Management – Dr. Marwan El Messiry –
Eslsca School of Business –MBA Program 2020
6
The size and characteristics of a country’s population can have a significant
effect on what it’s able to achieve in politics, economics, and culture.
The Demographic Environment
•Baby Boomers –Born between 1946 –1964, one of the largest
and most influential demographic groups in history.
•Gen Y or (Millennials) –Children of Baby Boomers, born
between 1978 –1994, making an impact on technology and
