Académique Documents
Professionnel Documents
Culture Documents
An Organizations Environment
(a) Competitors, industry size and competitiveness, related issues (b) Suppliers, manufacturers, real (j) (a) estate, services International Industry Sector Sector (c) Labor market, employment agencies, (i) DOMAIN universities, training Socio-cultural schools, employees Sector in other companies, unions (h) Government (d) Stock markets, ORGANIZATION Sector banks, savings and loans, private (g) investors Economic (e) Customers, clients, Conditions Sector potential users of products (f) (e) Technology Market and services Sector Sector (f) Techniques of production, science, research centers, automation new materials (g) Recession, unemployment rate, inflation rate, rate of investment, economics, growth (h) City, state, federal laws and regulations, taxes, services, court system, (b) political processes Raw Materials (i) Age, values, beliefs, Sector education, religion, work ethic, consumer (c) and green Human Resources Sector movements (j) Competition from (d) and acquisition by Financial foreign firms, Resources entry into overseas Sector markets, foreign customs, regulations, exchange rates
External Environment
Environmental Domain is the chosen territory of action defining the niche and external sectors with which the organization will interact to accomplish its goals.
External Environment
Sectors are subdivisions of the external environment that contain similar elements.
Task environment includes sectors with which the organization interacts directly, usually including:
External Environment
Industry sector Raw material sector Market sector Human sector International sectors
General Environment
Includes those sectors that may not have a direct impact on the daily operations of the firm. Often included are:
Government sector Sociocultural sector Economic conditions Technology sector Financial resources sectors
Professional associations
R&D Department
New developments, quality Long Mostly task Low
Manufacturing Department
Efficient production Short Task High
Sales Department
Customer satisfaction Short Social High
High
Moderate
Low
High
Moderate
Low
22%
17%
0%
Environmental Uncertainty
Uncertainty means that decision makers have some degree of insufficient information about environmental factors, making prediction of external changes difficult.
Environmental Uncertainty
Characteristics of the Environmental domain that influence uncertainty are:
The extent to which the external domain is simple or complex. The extent to which events are stable or unstable.
Environmental Uncertainty
Simple Complex Dimension concerns heterogeneity or the number and dissimilarity of external elements relevant to an organizations operations.
Stable-Unstable Dimension refers to whether elements in the environment are dynamic; the domain is stable if it remains the same over a period of months or years.
Low-Moderate Uncertainty
1. Mechanistic structure; formal, centralized 2. Many departments, some boundary spanning 3. Few integrating roles
STABLE
ENVIRONMENTAL CHANGE
4. Some Planning
High-Moderate Uncertainty
High Uncertainty
UNSTABLE
1. Organic structure, teamwork; 1. Organic structure, teamwork; participative, decentralized participative, decentralized 2. Few departments, much boundary 2. Many departments differentiated, spanning extensive boundary spanning 3. Few integrating roles 3. Many integrating roles 4. Planning orientation 4. Extensive planning, forecasting
SIMPLE
ENVIRONMENTAL COMPLEXITY
COMPLEX
Organization
Many departments and boundary roles Greater differentiation and more integrators for internal coordination Organic structure and systems with low formalization, decentralization, and low standardization Establishment of favorable linkages: ownership, strategic alliances, cooptations, interlocking directorates, executive recruitment, advertising, and public relations
Resource dependence
Control of the environmental domain: change of domain, political activity, regulation, trade associations, and illegitimate activities