ENVIRONMENT OF

ORGANIZATION

ELEMENTS OUTSIDE
ORGANIZATION THAT HAVE
IMPACT ON ORGANIZATIONS
OPERATION
SORTS OF ENVIRONMENT:
INTERORGANIZATIONAL,
GENERAL, AND GLOBAL
ENVIRONMENTS

INTERORGANIZATIONAL
ENVIRONMENT

OTHER FIRMS (ORGANIZATIONS)

IN ENVIRONMENT THAT
INTERACT WITH ORGANIZATION
FIRMS PROVIDE RAW MATERIAL,
KNOWLEDGE, CAPITAL,
EMPLOYEES, FACILITIES AND
EQUIPMENT

INTERORGANIZATIONAL
NETWORK
NETWORK
UNIONS

GOV. AGENCIES

SUPLIERS
ORGANIZATION/
COMPANY

SPECIAL INTERESTS

COMPETITORS

CUSTOMERS

PARNERS

GENERAL ENVIRONMENT

GENERAL FORCES AT WORK IN AN

ENVIRONMENT THAT HAVE A
SIGNIFICANT EFFECT
THROUGHOUT THE NETWORK
KINDS OF GENERAL
ENVIRONMENT: SOCIAL,
CULTURAL, LEGAL, POLITICAL,
ECONOMIC, TECHNOLOGICAL,
PHYSICAL.

SOCIAL ENVIRONMENT

CLASS STRUCTURE
DEMOGRAPHICS
MOBILITY PATTERNS
LIFE STYLES
EDUCATIONAL SYSTEMS
RELIGIOUS PRACTICES

CULTURAL ENVIRONMENT

HISTORY
TRADITIONS
VALUE OF THE SOCIETY

LEGAL SECTOR

CONSTITUTIONS AND LAWS

OF THE NATION IN WHICH
ORGANIZATION RUNS ITS
BUSINESS
ANTI-MONOPOLY LAW, TAX
LAW, INVESTMENT LAW,
FOREIGN INVESTMENT LAW

POLITICAL SECTORS

DISTRIBUTION AND
CONCENTRATION OF POWER
AND THE NATURE OF
POLITICAL SYSTEMS
(DEMOCRATIC VS
AUTHOCRATIC)

ECONOMIC SECTOR

ELEMENTS: LABOR MARKETS,

FINANCIAL MARKETS, MARKETS
FOR GOODS AND SERVICES.
ANALYSIS ELEMENTS: ECONOMIC
PLANNING SYSTEMS, FISCAL
POLICIES, CONSUMPTION
PATTERNS, PATERN OF CAPITAL
INVESTMENT, BANKING SYSTEM.

ECONOMIC CRITERIA:
BALANCE OF PAYMENT, ECONOMIC
ALLIANCES WITH OTHER
COUNTRIES, TRADE AGREEMENTS,
PRICE CONTROLS, ACCESS TO RAW
MATERIAL MARKETS, INTEREST
AND INFLATION RATES,
UNEMPLOYMENT RATES,
INVESTMENT RISK

TECHNOLOGICAL
SECTORS

KNOWLEDGE AND
INFORMATION ORGANIZATION
NEEDS TO CREATE SCIENTIFIC
DEVELOPMENT AND USE IT TO
PRODUCE GOODS AND
SERVICES

PHYSICAL SECTORS

NATURE AND NATURAL

RESOURCES: COAL AND OIL,
HARBOR, INFRASTRUCTURE
(ROUTE, RAILWAYS, AIRPORT,
ETC.)

INTERNATIONAL
ENVIRONMENT

ASPECTS OF ENVIRONMENT
THAT CROSS NATIONAL
BOUNDARIES.
ELEMENTS: UNITED NATIONS,
WTO, IMF,

THEORIES OF
ENVIRONMENT
ORGANIZATION RELATIONS

CONTINGENCY THEORY
RESOURCE DEPENDENCY
THEORY
POPULATION ECOLOGY
THEORY
INSTITUTIONAL THEORY

CONTINGENCY THEORY
(BURNS AND STALKER)

ORGANIZATION DEPEND ON THE

CONDITION OF ENVIRONMENT
(STABLE VS DYNAMIC)
STABLE ENVIRONMENT DEMANDS
MECHANISTIC STRUCTURE,
DYNAMIC ENVIRONMENT NEEDS
ORGANIC STRUCTURE
CHARACTERISTICS OF ORGANIC
STRUCTURE: LESS SPECIALIZATION
AND FORMALIZATION, IMPROVE
LATERAL COMMUNICATION

RESOURCE DEPENDENCY
THEORY (PFEFFER AND
SALANCIK)

ENVIRONMENT CONTROL
ORGANIZATION BECAUSE IT
PROVIDES RESOURCES BY
WHICH ORGANIZATION
OPERATE AND SURVIVE
CRITERIA OF RESOURCES:
CRITICALITY AND SCARCITY

CRITICALITY: ESTIMATE OF
THE IMPORTANCE OF A
PARTICULAR RESOURCE
SCARCITY: ESTIMATE OF THE
AVAILABILITY OF THE
RESOURCE WITHIN THE
ENVIRONMENT

POPULATION ECOLOGY
THEORY (HANNAN,
FREEMAN, ALDRICH)

ENVIRONMENT HAS POWER TO

SELECT ORGANIZATIONS FROM
A GROUP OF COMPETITORS
WHICH BEST SERVE NEEDS OF
THE ENVIRONMENT
ONLY ORGANIZATIONS THAT
CAN PROVIDE ENVIRONMENTS
NEEDS CAN SURVIVE

INSTITUTIONAL
THEORY (SELZNICK)

ENVIRONMENTS DEMANDS
ON ORGANIZATIONS:
TECHNICAL AND ECONOMIC
DEMANDS, REQUIRE
ORGANIZATIONS TO PRODUCE
AND EXCHANGE GOODS AND
SERVICES THROUGH MARKET

 SOCIAL AND CULTURAL DEMANDS,

REQUIRE ORGANIZATIONS TO PLAY
PARTICULAR ROLES IN SOCIETY AND
ESTABLISH AND MAINTAIN CERTAIN
OUTWARD APPEARANCES

INSTITUTIONAL PRESSURES
LEGAL AND POLITICAL INFLUENCES
(COERCIVE INSTITUTIONAL PRESSURE)
CULTURAL INFLUENCES (NORMATIVE
INSTITUTIONAL PRESSURE)
SOCIAL INFLUENCES (MIMETIC
INSTITUTIONAL PRESSURE)

BUFFERING AND
BOUNDARY SPANNING

BUFFERING, PREVENTING EFFORTS

FROM INTERRUPTED OPERATION
DUE TO MATERIAL, LABOR, OR
CAPITAL SHORTAGE
BOUNDARY SPANNING, ACTIVITIES
TO MONITOR ENVIRONMENT AND
TO FIND INFORMATION RELEVANT
TO ORGANIZATIONS NEEDS