Chapter 3. The environment and culture of orangizations
Management 309 with Wesson at Texas A&M University
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Name and describe the 2 categories of a business environment?
1. External environment: Everything outside an organization’s boundaries that might affect it
2. Internal environment: The conditions and forces within an organization
Name and describe the 2 things that make up external environment
General environment - The set of broad dimensions and forces in an organization’s surroundings that create its overall context
Task environment - is composed of specific groups and organizations
Name the 5 dimensions of the General Environment
1. Economic
2. Technological
3. Socioculture
4. Political-legal
5. international
International dimension (general environment)
The extent to which an organization is involved in or affected by business in other countries
political–legal dimension (general environment)
The government regulation of business and the relationship between business and government
sociocultural dimension (general environment)
The customs, mores, values, and demographic characteristics of the society in which the organization functions
technological dimension (general environment)
The methods available for converting resources into products or services
economic dimension (general environment)
The overall health and vitality of the economic system in which the organization operates
What are the 5 specific groups affecting the organization under the dimensions of the "task environment"
-Competitors seeking the same resources at the organization
-Customers who acquire an organizations product or resources
-Supplier providing resources
-Regulators that control, legislate, or influence organizations policies
- strategic partners (allies)
What were the 2 regulators discussed under the task environment and how were they created?
1. Regulatory agencies - created by gov (EDA)
2. interests groups - organized by members (MADD)
What are the 4 types of forces within an internal environment?
1. owner
2. Board of directors
3. Employees
4. Physical work environment
Owner (internal environment)
Persons with legal property rights to a business
Board of directors (internal environment)
Elected by stockholders and are charged with overseeing the general management of the firm to ensure that it is run in a way that best serves the stockholders interest
Employee(internal environment)
Persons who work for the firm and have a rested interest in its continued operation and existence
Physical work environment (internal environment)
the actual physical environment of the organization and the work that people o
What is the 2 importance of organization culture
1. Culture determines the overal "feel" of the organization, although it may vary across different segments of organization
2. Culture is a powerful force that can shape the firms overall effectiveness and long-term success
What are the 4 determinantes of organizational culture
1. organizations founder (values and beliefs)
2. Corporate success that strengths the culture
3. Shared experiences that bond organizational member toghether
4. symbols , storied, heros, slogans, etc that personify the spirit of the organization
What 3 techniques are used when managing organizational culture
1. understand the current culture and know whether to maintain or change it
2. Articulate the culture through slogans ceremonies and shared experiences
3. Reward and promote people who's behaviors are consistent with desired culture values
What 3 techniques are followed when changing organizational culture
1 develop a clear idea of what kind of culture you want to create
2 bring in outsiders to important managerial positions
3 adopt new slogans, stories, ceremonies and purposely break with tradition
Uncertainty
Is a driving force that influences organizational decision
Environmental turbulence
unexpected changes and upheavals in the environment of an organization
In what 2 ways environmental change occurs?
1. degree to which change in environment is occurring
2. degree to homogeneity or complexity of the environment
Describe when you would have most uncertainty and least uncertainty
Most - dynamic degree of change and complex degree of homogeneity
Least - stable degree of change and simple degree of homogeneity
What are porters 5 competitive forces
-threat of new entrants into market
-competitive rivalry among present competitors
-threat of substitute products
-power of buyer (buyers influence market)
-power of suppliers-extent to which suppliers influence market rivals
What 3 information management techniques can be used to respond to their environments
1. Boundary spanner-employee who accumulates information through contacts outside the org
2. Environmental scanning
3. Information systems-summerize and deliver information in a form pertinent to a managers needs
Strategic response to an organizations environment
maintaining the status quo, altering the current strategy, or adopting a new strategy
When are the 2 differences of flexibility when they are influenced in an organization
Mechanistic - long life cycles
Organic - short life cycles, dynamic
Explain direct influence on the environment
change the nature of the competitive conditions in its environment to suit its needs, for instanced pursuing new or changed relationships with suppliers, customers, and regulators
Name and describe the 4 models of organizational effectiveness and what they focus on
-systems resource approach (acquiring resources as needed)
-interneal processes approach, transformation proces (production efficiencies)
-goal approach, outputs (achieving organizational goals)
-strategic constituencies approach, feedback (satisfying stakeholders)
What e ways can environments affect organizations
1 Change and complexity
2 Competitive forces
3 Environmental turbulance
What 4 ways do organizations respond to their environments
1 information management in organizations
2 strategic response
3 mergers, acquisitions, alliances
4 organizational design and flexibility
5 direct influence of the environment
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