MGMT 351 Chapter 4 Organizational Environment

Reasons people won't join union

- perception of corrupt leadership - distrust in agenda - desire to identify with the organization instead of the antagonistic force of union

environmental observation methods:

-buffering -boundary spanning -forecasting -benchmarking

sectors that make up the task environment

-customers -suppliers and distributors -competitors -government -special interest groups -local communities -strategic partners -media

external elements

-governmental policies and procedures to various economic indicators -changing social trends

6 forces of the general environment:

-political, legal, and ethical -economic -technological -demographic -sociocultural -global

right-to-work laws

A state law forbidding requirements that workers must join a union to hold their jobs.

Managerial challenges related to innovation

Looking at things differently and being creative in choosing solutions

Sociocultural Forces

Norms, trends, and behaviors that emanate from a country's social structure and cultural values

Current Managerial Issues and Challenges:

Sustainability Customer Service Outsourcing/Offshoring Economic Turbulence Ethical Management

general environment

a far-reaching set of forces that indirectly impact the organization over time

task environment

a group of sectors that directly and immediately impact the organization and influence its decision making on a daily basis

geographic clusters (agglomerations)

a group of similar organizations located close to each other to enhance the specialization of a particular region

competitive advantage

a set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition

buffering

absorbing uncertainty from the environment so the organization can perform its primary roles efficiently

union security agreement

an agreement forcing new members of an organization to join a union

stakeholder

an individual or group that is impacted by the organization

Knowledge management

assessing and systematizing knowledge resources to find new solutions to ongoing problems, so that companies can gain a competitive advantage

benchmarking

constant comparisons that organizations make between themselves and others

The task environment includes:

customers, suppliers, distributors, competitors, government, special interests, communities, strategic partners, the media

internal environment

elements that occur within an organization, such as strategy, culture, technology, policies, procedures, and intellectual capital

external stakeholders

individuals and groups outside the organization's environment that have interest in the organization

internal stakeholders

owners, stockholders, employees, and board of directors

boundary spanning

scanning the environment to detect information that organizations believe is important for their business

forcasting

the art and science of predicting future events

supply chain management

the control and coordination of inventory through transportation and logistics

organizational environment

the factors, forces, and groups both inside and outside an organization that impact everyday activities

external environment

the factors, forces, and groups outside an organization that impact everyday activities

strategic alliances

two organizations must serve the same customer, each needing help from the other

Business intelligence

using complex software to gather and analyze large amounts of internal and external data to detect certain patterns or trends; also called analytics

Managerial challenges related to technology

• Makes time and location of communication and interaction unimportant. • E-commerce has rewritten rules of online shopping and service.