[mg-en-lectures] [03] organizational environments
TRANSCRIPT
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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 I: Introduction
Part II: Planning
Part III: Organizing
Part IV: Leading
Part V: Controlling
Management
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Part I outline
Part I: Introduction
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