[MG-En-lectures] [03] Organizational Environments

8/10/2019 [MG-En-lectures] [03] Organizational Environments

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Dan Lungescu, PhD, assistant professor

Irina Salan, PhD, assistant professor2014-2015

Management

Part I: Introduction

Ch. 3. Organizationalenvironments


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Course outline


Part II: Planning

Part III: Organizing

Part IV: Leading

Part V: Controlling

Management


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Part I outline


Ch. 1. Managers job

Ch. 2. The evolution of management

Ch. 3. Organizational environments

Ch. 4. Social responsibility and ethics

Management


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Learning objectives

After studying this chapter, you should be able to:

Explain the nature of organizational culture and its

major

manifestations.

Explain how organizational cultures can be changed.

Explain the concepts of me

ga-environment and taskenvironment, and outline their major elements.

Contrast the population ecology and resource dependence

views of the organization-environment interface.

Explain how environmental uncertainty and munificenceimpact organizations.

Describe the major methods the organizations use to

manage their environments.


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Chapter 3 outline

A. The major environments

B. Organizational culture

C. Types of external environments

D. Analyzing environmental conditions

E. Managing environmental elements


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the core part: organizational culture

A. The major environments

Outline A. The major environments

The general conditions that exist within an organization.

I. Internal environment

structure

The major forces outside the organization that have the potential to

significantly influence the likely success of products or services.

II. External environment


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the way things are done around here

B. Organizational culture

Outline B. Organizational culture

A system of shared values, assumptions, beliefs, and norms that

unite the members of an organization.

Organizational culture

3 major aspects of OC affect the organization:

The degree to which a culture supports, rather than interferes with,

reaching organizational goals.

Direction

The extent to which a culture is widespread among members.

Pervasiveness

The degree to which members accept the values and other aspects of a

culture.

Strength


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Cultures layers

Outline B. Organizational culture Cultures layers

1. Beliefs (something istrue or false).

2. Values (something is

good or bad) and

attitudes.

3. Practices

(manifestations):

Symbols.

Heroes.

Stories.

Behavior norms.

Rites and rituals.


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Manifestations of OC

Outline B. Organizational culture Manifestations of organizational culture

Object, act, event, or quality that serves as a vehicle for conveying

meaning.

Symbols

Narratives based on true events, which sometimes may beembellished to highlight the intended value.

Stories

A relatively elaborate, dramatic, planned set of activities intended

to convey cultural values to participants and, usually, an audience.

Rites

A system of rites performed in conjuration with a single occasion or

event.

Ceremonial


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Characteristics of organizational culture

Outline B. Organizational culture Characteristics of organizational culture

The degree to which employees identify with the organization as a whole

rather than with their type of job or field of professional expertise.

Member identity

The degree to which work activities are organized around groups rather

than individuals.

Group emphasis

The degree to which management decisions take into consideration the

effect of outcomes on people within the organization.

People focus

The degree to which units within the organization are encouraged to

operate in a coordinated or interdependent manner.

Unit integration


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Characteristics of OC (2)

Outline B. Organizational culture Characteristics of organizational culture(2)

The degree to which rules, regulations and direct supervision are used to

oversee and control employee behavior.

Control

The degree to which employees are encouraged to be aggressive, innovative

and risk-seeking.

Risk tolerance

The degree to which rewards such as salary increases and promotions are

allocated according to employee performance rather than seniority,

favoritism or other nonperformance factors.

Reward criteria

The degree to which employees are encouraged to air conflicts and

criticisms openly.

Conflict tolerance


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Characteristics of OC (3)

Outline B. Organizational culture Characteristics of organizational culture(3)

The degree to which management focuses on results or outcomes rather

than on the techniques and processes used to achieve those outcomes.

Means-ends orientation

The degree to which the organization monitors and responds to changes in

the external environment.

Open-system focus


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C. Types of external environments

Outline C. Types of external environments

Task

environmentCustomers and clients

Competitors

SuppliersLaborsupply

Government

agencies

Mega-

environment

Legal-Political

The

organization:

Organizational

culture


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Types of external environments (2)

Outline C. Types of external environments(2)

elements

elements

The specific outside elements with which an organization interfaces

in the course of conducting its business.

1. Task environment

The broad conditions and trends in the societies within which an

organization operates.

2. Mega-environment (general environment)


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1. Task environment

Outline C. Types of external environments 1. Task environment

Individuals/organizations that purchase an organizations products/services.

Customers and clients

Other organizations that either offer or have a high potential of offering

rival products or services.

Competitors

Those organizations and individuals that supply the resources an

organization needs to conduct its operations.

Suppliers

Those individuals who are potentially employable by an organization.

Labor supply

Agencies that provide services and monitor compliance with laws and

regulations at local, state or regional, and national levels.

Government agencies


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2. Mega-environment

Outline C. Types of external environments 2. Mega-environment

The current state of knowledge regarding the production of products andservices.

Technological element

The system of producing, distributing, and consuming wealth.

Economic element

Legal & governmental systems within which an organization must function.

Legal-political element

The attitudes, values, norms, beliefs, behaviors, and associated

demographic trends that are characteristic of a given geographic area.

Socio-cultural element

The developments in countries outside an organizations home country that

have the potential to influence the organization.

International element


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D. Analyzing environmental conditions

Outline D. Analyzing environmental conditions

I. Views of the organization-environment interface

II. Characteristics of the environment


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I. Organization-environment interface

Outline D. Analyzing environmental conditions I. Organization-environment interface

A model that focuses on populations or groups of organizations and

argues that environmental factors cause organizations with

appropriate characteristics to survive and others to fail.

Population ecology model (Natural selection model)

A model that highlights organizational dependence on theenvironment for resources and argues thatorganizations attempt to

manipulate the environment to reduce that dependence.

Resource dependence model


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II. Characteristics of the environment

Outline D. Analyzing environmental conditions II. Characteristics of the environment

The extent to which the environment can support sustained growth

and stability.

Environmental munificence

dimensions

A condition in which future environmental circumstances affecting

an organization cannot be accurately assessed and predicted.

Environmental uncertainty


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Environmental uncertainty

Outline D. Analyzing environmental conditions II. Characteristics Uncertainty

The number of elements in an organizations environment and their

degree of similarity.

Environmental complexity

The rate and predictability of change in the elements of an

organizations environment.

Environmental dynamism


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Assessing environmental uncertainty

Outline D. Analyzing the environment II. Characteristics Uncertainty Assessment

Environmental complexity

Environ

mentaldynamism

homogeneous heterogeneous

unstable

stable

Low uncertainty

1. Small number of similar

external elements

2. Elements stay the same or

change slowly

Example: Funeral homes

Moderate low uncertainty

1. Large number of dissimilar

external elements

2. Elements stay the same or

change slowly

Example: Insurance companies

Moderate high uncertainty

1. Small number of similarexternal elements

2. Elements change rapidly

and unpredictably

Example: Womens apparel

High uncertainty

1. Large number of dissimilarexternal elements

2. Elements change rapidly

and unpredictably

Example: Software companies


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E. Managing environmental elements

Outline E. Managing environmental elements

ways

Changing internal operations and activities to make the organization

more compatible with its environment.

I. Adaptation

ways

Attempting to alter the environmental elements in order to make

them more compatible with the needs of the organization.

II. Favorability influence

Changes in the mix of products and services offered so that an

organization will interface with more favorable environmental

elements.

III. Domain shifts


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I. Adaptation

Outline E. Managing environmental elements I. Adaptation

Stockpiling either inputs into or outputs from a production or

service process in order to cope with environmental fluctuations.

Buffering

Taking actions aimed at reducing the impact of fluctuations, given

the market.

Smoothing

Making predictions about changing conditions and future events

that may significantly affect the business of an organization.

Forecasting

Providing limited access to a product or service that is in high

demand.

Rationing


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II. Favorability influence

Outline E. Managing environmental elements II. Favorability influence

Using communications media (1) to gain favorable publicity forparticular products and services and (2) to create a favorable overall

impression of the organization among the public.

Advertising and public relations

Creating roles within the organization that interface with importantelements in the environment.

Boundary spanning

Finding and attempting to attract job candidates who are capable of

effectively filling job vacancies.

Recruiting

Seeking favorable agreements on matters of importance to the

organization.

Negotiating contracts


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Favorability influence (2)

Outline E Managing environmental elements II Favorability influence (2)

Absorbing key members of important environmental elements into

the leadership or policy-making structure of an organization.

Co-opting

An agreement involving two or more organizations that arrange to

produce a product or service jointly.

Joint venture

Organizations composed of individuals or firms with common

business concerns.

Trade associations

Influencing legislation and/or the behavior of government

regulatory agencies.

Political activity

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[MG-En-lectures] [03] Organizational Environments

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