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Unit 3: Behavioural Considerations

External Factors Notes
External factors are norms of desirable behaviour that exist in the society of which organization
is a part. These norms include a set of attitudes, often collectively referred to as the work ethic,
which is manifested in employees’ loyalty to the organization, their diligence, their spirit, and
their pride in doing a good job (rather than just putting in time). Some of these attitudes are
local – that is, specific to the city or region in which the organisation is located. In encouraging
entrepreneurs to locate in their city or state, chambers of commerce and other promotional
organizations, often claim that their location has a loyal diligent work force. Other attitudes and
norms are industry specific e.g. rail road industry has norms different from airlines industry.

Internal – Culture
Culture is one of most important internal factor (internal to the organization) – the common
belief, shared values, norms of behaviour and assumptions that are implicitly accepted and
explicitly manifested throughout the organization. Cultural norms are extremely important
since they explain why two organizations, with identical formal management control systems,
may vary in terms of actual control.

3.2 Managerial Styles

Managerial style is something that we associate with Individual Managers. It is related to
corporate culture, which is pervasive and is an organizational concept. The style of top
management has a slow but steady influence upon the style of other managers and upon the
culture of the organisation. On the other hand, culture influences the prevailing styles of
management.

Notes Managers differ in their styles; some of the differences are listed below:

Rely heavily on reports and other formal Rely heavily on informal contacts
documents
Think in concrete terms Abstract thinkers
Analytical Heuristic
Risk taker Risk – averse
Process oriented Result oriented
People oriented Task oriented
Friendly Aloof
Long term oriented Short term oriented
Theory X (They dominate decision Theory Y (They encourage organisation
making) participation in decision making)
Emphasis on monetary rewards Emphasis on a broader act of rewards

Managerial Style is Influenced by the Managers

1. Background
2. Personality characteristics
Background includes things like Manager’s Age, Manager’s formal education and Manager’s
experience in a given function such as Manufacturing, Technology, Marketing or Finance.
Personality characteristics include such variables as Manager’s willingness to take risk and
tolerance for ambiguity.

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