Chapter 2 Review

Explain what the external environment is and why its important

The external environment refers to factors, forces, situations and events that take place outside the organization that affect its performance. This includes economic, demographic, political/legal, sociocultural, technological, and global components. The external environment is important because it causes constraints and challenges to managers.

Discuss how the external environment affects managers

There are three was that the external environment affects managers: 1) its impact on jobs and employment, 2) the amount of environmental uncertainty, 3) the nature of stakeholder relationships

Define what organizational culture is and explain why it's important

Organizational culture = the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. It's important because of the impact it has on decisions, behaviors, and actions of organizational employees

Describe how organizational culture affects managers

Organizational culture affects managers in two ways: through its effect on what employees do and how they behave, and through its effect on what managers do as they plan, organize, lead, and control