Description
This is a PPT explaining about organization environment.
Session on Organisational environment
What is the Organizational Environment?
• Environment: the set of forces surrounding an organization that have the potential to affect the way it operates and its access to scarce resources Organizational domain: the particular range of goods and services that the organization produces, and the customers and other stakeholders whom it serves
Copyright 2007 Prentice Hall 2
•
The Organizational Environment
The Specific Environment
• The forces from outside stakeholder groups that directly affect an organization’s ability to secure resources
– Outside stakeholders include customers, distributors, unions, competitors, suppliers, and the government
• The organization must engage in transactions with all outside stakeholders to obtain resources to survive
4
The General Environment
• The forces that shape the specific environment and affect the ability of all organizations in a particular environment to obtain resources Economic forces: factors, such as interest rates, the state of the economy, and the unemployment rate, determine the level of demand for products and the price of inputs Technological forces: the development of new production techniques and new informationprocessing equipment, influence many aspects of organizations’ operations
The General Environment… • Political and environmental forces: influence government policy toward organizations and their stakeholders • Demographic, cultural, and social forces: the age, education, lifestyle, norms, values, and customs of a nation’s people
– Shape organization’s customers, managers, and employees – Eg- Baby products, the youth segment and their preferences in different periods
Sources of Uncertainty in the Environment
• Environmental complexity: the strength, number, and interconnectedness of the specific and general forces that an organization has to manage
– Interconnectedness: increases complexity – Eg The financial crisis of the recent past in the US Sept-Oct’08 forms a connector or links many other sectors.
Sources of Uncertainty in the Environment • Environmental dynamism: the degree to which forces in the specific and general environments change over time
– Stable environment: forces that affect the supply of resources are predictable – Unstable (dynamic) environment: it is difficult to predict how forces will change that affect the supply of resources Eg- Indian Post Office
Copyright 2007 Prentice Hall 8
Sources of Uncertainty in the Environment • Environmental richness: the amount of resources available to support an organization’s domain
– Environments may be poor because:
• • The organization is located in a poor country or in a poor region of a country There is a high level of competition, and organizations are fighting over available resources
Copyright 2007 Prentice Hall
9
Three Factors Causing Uncertainty
Copyright 2007 Prentice Hall
10
Resource Dependence Theory
• The goal of an organization is to minimize its dependence on other organizations for the supply of scare resources and to find ways of influencing them to make resources available An organization has to manage two aspects of its resource dependence: It has to exert influence over other organizations so that it can obtain resources It must respond to the needs and demands of the other organizations in its environment
Types of interdependencies to tackle uncertainty
– Symbiotic interdependencies: interdependencies that exist between an organization and its suppliers and distributors Competitive interdependencies: interdependencies that exist among organizations that compete for scarce inputs and outputs
–
•
Organizations aim to choose the interorganizational strategy that offers the most reduction in uncertainty with least loss of control
Copyright 2007 Prentice Hall 12
doc_199813914.pptx
This is a PPT explaining about organization environment.
Session on Organisational environment
What is the Organizational Environment?
• Environment: the set of forces surrounding an organization that have the potential to affect the way it operates and its access to scarce resources Organizational domain: the particular range of goods and services that the organization produces, and the customers and other stakeholders whom it serves
Copyright 2007 Prentice Hall 2
•
The Organizational Environment
The Specific Environment
• The forces from outside stakeholder groups that directly affect an organization’s ability to secure resources
– Outside stakeholders include customers, distributors, unions, competitors, suppliers, and the government
• The organization must engage in transactions with all outside stakeholders to obtain resources to survive
4
The General Environment
• The forces that shape the specific environment and affect the ability of all organizations in a particular environment to obtain resources Economic forces: factors, such as interest rates, the state of the economy, and the unemployment rate, determine the level of demand for products and the price of inputs Technological forces: the development of new production techniques and new informationprocessing equipment, influence many aspects of organizations’ operations
The General Environment… • Political and environmental forces: influence government policy toward organizations and their stakeholders • Demographic, cultural, and social forces: the age, education, lifestyle, norms, values, and customs of a nation’s people
– Shape organization’s customers, managers, and employees – Eg- Baby products, the youth segment and their preferences in different periods
Sources of Uncertainty in the Environment
• Environmental complexity: the strength, number, and interconnectedness of the specific and general forces that an organization has to manage
– Interconnectedness: increases complexity – Eg The financial crisis of the recent past in the US Sept-Oct’08 forms a connector or links many other sectors.
Sources of Uncertainty in the Environment • Environmental dynamism: the degree to which forces in the specific and general environments change over time
– Stable environment: forces that affect the supply of resources are predictable – Unstable (dynamic) environment: it is difficult to predict how forces will change that affect the supply of resources Eg- Indian Post Office
Copyright 2007 Prentice Hall 8
Sources of Uncertainty in the Environment • Environmental richness: the amount of resources available to support an organization’s domain
– Environments may be poor because:
• • The organization is located in a poor country or in a poor region of a country There is a high level of competition, and organizations are fighting over available resources
Copyright 2007 Prentice Hall
9
Three Factors Causing Uncertainty
Copyright 2007 Prentice Hall
10
Resource Dependence Theory
• The goal of an organization is to minimize its dependence on other organizations for the supply of scare resources and to find ways of influencing them to make resources available An organization has to manage two aspects of its resource dependence: It has to exert influence over other organizations so that it can obtain resources It must respond to the needs and demands of the other organizations in its environment
Types of interdependencies to tackle uncertainty
– Symbiotic interdependencies: interdependencies that exist between an organization and its suppliers and distributors Competitive interdependencies: interdependencies that exist among organizations that compete for scarce inputs and outputs
–
•
Organizations aim to choose the interorganizational strategy that offers the most reduction in uncertainty with least loss of control
Copyright 2007 Prentice Hall 12
doc_199813914.pptx