Management Daft Chapter 3

Organizational Environment

(External Environment): All elements existing outside the organizations boundaries that have the potential to affect the organization

International Dimension (General)

(General Environment): Events originating in foreign countries as well as opportunities for U.S. companies in other countries.

Technological Dimension (General)

(General Environment): Includes Scientific and technological advancements in the industry and society at large.

Natural Dimension (General)

(General Environment): Includes all elements that occur naturally on earth, including plants, animals, rocks, and natural resources such as air, water, and climate.

Legal-Political Dimension (General)

(General Environment): Includes federal, state, and local government regulations, and political activities designed to influence company behavior.

Sociocultural Dimension (General)

(General Environment): Represents the demographic characteristics, norms, customs, and values of the population within which the organization operates.

Economic Dimension (General)

(General Environment): Represents the overall economic health of the country or region in which the organization operates.

Joint Ventures

(Strategy to adapt to the environment): A strategic alliance or program by two or more organizations

Inter-organizational Partnerships

(Strategy to adapt to the environment): Popular strategy for adapting to an environment. Reduce boundaries and increase collaboration with other organizations.

Boundary-Spanning Roles

(Strategy to adapt to the environment): Roles assumed by people and/or departments that link and coordinate the organization with key elements in the external environment

Merger

(Strategy to adapt to the environment): The combining of two or more organizations into one

Competitors (Task)

(Task Environment): Other organizations in the same industry or type of business that provide goods or services to the same set of customers.

Customers Dimension (Task)

(Task Environment): People and organizations in the environment that acquire goods or services from the organization.

Suppliers (Task)

(Task Environment): People and organizations that provide the raw materials the organization uses to produce its output

Labor Market (Task)

(Task Environment): The people available for hire by the organization

The Internal Environment Includes

-Corporate Culture -Production Technology -Organization Structure -Physical Facilities

Task Environment

Closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance.

General Environment

Includes all the elements existing outside the boundary of the organization that have the potential to affect the organization.

Characteristics that influence Uncertainty

The number of factors that affect the organization and the extent to which those factors change.

Uncertainty

When managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes