Read the instructions below and write a post of 250 words

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The External Environment

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Organiza(on Theory and Design Twel%h Edi+on Richard L. Da%

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The Organiza+on Environment

•  All the elements that exist outside the boundary of the organiza+on

•  Poten+al to affect all or part of the organiza+on – Domain is the chosen environmental field of ac+on

– Sectors or subdivisions that contain similar elements

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An Organiza+on’s Environment

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The Task Environment

Sectors that the organiza+on interacts with directly to achieve goals

– Industry Sector

– Raw Materials Sector

– Market Sector

– Human Resources Sector

– Interna+onal Sector

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General Environment

•  Sectors that indirectly impact a firm – Government sector: regula(on – Natural sector: sustainability – Sociocultural sector: working condi(ons – Economic condi+ons: global recession – Technology sector: massive and constant changes – Financial resources: important to entrepreneurs

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Interna+onal Environment

•  Can directly affect many organiza+ons

•  Has grown in importance

•  Interna+onal events influence domes+c sectors of the environment

•  All organiza+ons face domes+c and global uncertainty

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The Changing Environment

As the environment becomes more complex, •  Events become less stable •  Financial resources become less available •  The level of uncertainty increases The environment influences organiza+ons

– Need for informa+on changes – Need for resources changes

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Elements of Uncertainty

•  Uncertainty: lack of sufficient informa+on about environmental factors

•  Complexity: number and dissimilarity of external elements

•  Dynamism: whether the organiza+on operates in a stable or unstable environment

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Factors Causing Uncertainty

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Dimensions of Environmental Uncertainty

•  Simple, stable environment: uncertainty is low

•  Complex, stable environment: greater uncertainty

•  Simple, unstable environment: even greater uncertainty

•  Complex, unstable environment: greatest uncertainty

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Framework for Assessing Environmental Uncertainty

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Adap+ng to Complexity and Dynamism

•  Organiza+ons need the right fit between internal structure and the external environment – Adding Posi+ons and Departments – Building Rela+onships

•  Boundary-spanning roles •  Business intelligence

– Differen+a+on and Integra+on – Organic vs. Mechanis+c Management Process – Planning, Forecas+ng, and Responsiveness

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Organiza+onal Departments Differen+ate to Meet Needs of Sub-environments

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Different Goals and Orienta+ons among Departments

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Environmental Uncertainty and Organiza+onal Integrators

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Mechanis+c and Organic Forms

•  Tasks are specialized •  Tasks are rigidly defined •  Strict hierarchy of authority

and control

•  Knowledge and control of tasks are centralized

•  Communica+on is ver+cal

•  Employees contribute to the common task of the department

•  Tasks are adjusted and redefined through teamwork

•  Less hierarchy of authority and control

•  Knowledge and control of tasks are located anywhere in the organiza+on

•  Communica+on is horizontal

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Con+ngency Framework for Uncertainty and Organiza+onal Responses

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Dependence on Financial Resources

Resource-dependence perspec>ve means organiza+ons depend on the environment

– Strive to acquire control over resources to minimize dependence

– Organiza+ons are vulnerable if resources are controlled by other organiza+ons

– Minimize vulnerabili+es – Will team up with others when resources are scarce

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Influencing Financial Resources

•  Balance linkages and independence

•  Reach out and change or control elements in the environment

-  Establish favorable rela+onships with key elements of the environment -  Shape the environment by influencing key sectors

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Organizing Strategies for Controlling the External Environment

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Environmental Characteris+cs and Organiza+onal Ac+ons

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Design Essen+als

v Dynamism and complexity have major implica+ons for organiza+ons v Organiza+onal environments differ regarding uncertainty and resource dependence v The goal for organiza+ons is managing efficiencies and survival

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Design Essen+als v Managers must understand how the environment influences the structure and func+oning of an organiza+on v When risk is great, organiza+ons can establish linkages to maintain a supply of resources

v Organiza+ons can learn and adapt to the environment and change and control the environment

©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23