The organization Environment

The organization Environment

1. Task Environment

   • includes sectors with which the organization interacts directly and that have a direct impact on the organizations ability to achieve goals.

2. General Environmental

   • In the financial sector is often first and foremost in the minds of entrepreneurs.
   • The technology sector is an area in which massive changes have occured in recent years, from streaming video and advances in mobile technology to cloning and stem-cell research
   • Economic conditions often affect the way a company must do business
   • In the sociocultural sector, people are concerned about the natural environments and want organizations to do more to protect it
   • In government sector, regulations influence every phase of organizational life
   • - includes those sectors that might no have a direct impact on daily operations of a firm but will indirectly influence it.

3. Organizational environmental is defined as everything that exists outside the boundary of the organization and has the potential to affect all or part of the organization

   • Domain is the chosen environmental field of action
   • Tec sectors can be analyzed : industry, raw materials, human resources, financial resources , market, technology, economic conditions, government, sociocultural and international

4. CHAPTER 6: The Impact of Environmental

   • The Changing Environment
     • - can be described along several dimensions, such as whether the environment is stable or unstable, homogeneous or heterogeneous, simple or complex
     • Simple -Compex Dimension
       • - concerns environmental complexity, which refers to heterogeneity, or the number and dissmilarity of external elements( e.g., competitors, suppliers, industry chnges, government regulations )
         • The complex environment is one in which the organizations interacts with and is influenced by numerous diverse external elements
         • In a simple environment , the organization interacts with and is influenced by only a few similar external elements
     • Stable- Unstable Dimension
       • it refers to whether the environment in which the organization operates is dynamic . A domain is stable if remains essentially the same over a period of months or years
     • Framework
       • The simple- complex and stable-unstable dimensions are combined in a framework
       • The simple, stable environment, uncertainly is low
       • The complex-stable represent somewhat greater uncertainty. A large number of elements have ti be scanned, analyzed, and acted upon for the organization to perform well
   • Adapting to a Changing Environment
     • Adding Positions and Departments
       • The human resource department deals with unemployed people who want to work for the company
       • The marketing department finds customers
       • The finance department deals with bankers
       • The legal department works with the courts and government agencies
       • The E-Business departments handle electronic commerce and information departments deals with the increasing complexity of computerized information and knowledge management
     • Building Relationships
       • Buffer departments surround the technical core and exchange materials, resources and money between the environment and the organization
         • The purchasing departments buffers the technical core by stockpilling supplies and raw materials
         • The human resource department buffers the technical core by handling the uncertainty associated with finding, hiring and training production employees
       • Boundary-spanning roles link and coordinate an organization with key elements in the external environment
         • Primarily concerned with the exchange of information to detect and bring into the organization information avoz changes in the environment and to send informations into the environemt that presents the organizations in a favorable light
         • Business intelligence refers to the high-tech analysis of large amounts of internal and external data to spot patterns and relationships that might be signficant
         • Competitive intelligence gives top executives a systematic way to collect and analyze public information about rivals and use it to make better decisions
           • An intelligence team is a cross-functional group pf managers and employees usually led by a competitive intelligence professional, who work together to gain a deep understanding of a specific business issue, with the aim of presenting insights, possibilities, and recommendations to top leaders
     • Differentiation and Integration
       • Differentiation refers to the differences in cognitive and emotional orientations among managers in different functional departments, and the difference in formal structure among these departments
       • Integration is the quality of collaboration among departments. Formal integrators are often required to coordinate departments
     • Organic vs. Mechanistic management process
       • Mechanistic: When the external environment was stable, the internal was characterized by standards rukes, procedures, a clear hierarchy of authority, formalization and centralization
       • Organic: the internal organization was much looser, free-flowing, and adaptive, with a loose hierarchy and decentralized decision making
     • Planning, Forecasting and Responsiveness
       • become more important as a way to keep the organization geared for a coordinated, speedy response
   • Framework for Response to environmental change
   • Dependence on external resources
     • Resource dependence means that organizations depend on the environment but strive to acquire control over resources to minimize their dependence
   • Influencing External Resources
     • Establishing Formal Relationships
       • 1.Acquire an ownership stake, 2.Form joint ventures and partnerships, 3.Lock in key players, 4.recruit executives, 5.use advertising public relations
     • Influencing Key Sources
       • 1.Change where you do business, 2. use political activity, 3. join in trade associations, 4.avoid illegitimate activities
     • Organization- environment integrative Framework

5. International Environment

   • This sector can directly affect many organizations and it has become extremely important in the last few years

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