Ch 8: Environment Flashcards
What’s a general environment?
Embodies conditions that potentially have an impact on the organization.
What´s a specific environment?
Is the part of the environments that is directly relevant to the organization in achieving its goals (the part of the environment with which management will be concerned, because of the consistencies that can positively or negatively influence the organization’s effectiveness).
Mention some factors that would define a stable environment.
- Few forces in specific environment
- Not many competitors
- Not many technological breakthroughs
- Little activity by public pressure groups
e.g. a hotel, rail system, mining
Mention some factors that would define a dynamic environment.
- Rapidly changing technologies
- Many new competitors
- Changing customer group
- Difficulty in acquiring raw materials
- Changes in customer preferences
e.g. phone-market
Describe Burns & Stalkers mechanistic structure.
Stable and Certain
- Authority
- Centralisation
- High formalization
- High complexity
- Rigid (fixed) task definition
Describe Burns & Stalkers Organic structure.
Dynamic and Uncertain
- Expertise
- Decentralisation
- Low formalisation
- Low complexity
- Flexible task definition
Describe how Lawrence and Lorsch measured the external environment.
Degree of uncertainty
- Rate of change in product innovation
- Clarity of information that management had about the environment
- How long it took for management to get feedback from their actions
Describe how Lawrence and Lorsch measured the internal environment.
Low differentiation (low specialization, low division of labor)→ low integration (collaboration)
High differentiation (high specialization, high division of labor) → high integration (collaboration)
Duncan measured the environmental framework using rate of change (stable, dynamic) and complexity (complex, simple). Name the 4 different frameworks and their rate of change and complexity.
- High uncertainty: dynamic & complex
- Low moderate uncertainty: stable & complex
- moderate to high uncertainty: dynamic & simple
- low uncertainty: stable & simple
Mention some structure elements for Duncans high uncertainty.
Large number of unpredictable external elements. e.g. KPM
Structural elements:
- decentralization,
- organic differentiation,
- extensive integration and coordination,
- extensive planning and forecasting.
Mention some structure elements for Duncans low moderate uncertainty.
Large number of dissimilar external elements which change slowly, e.g. university, banks, retail chains.
Structural elements:
- centralized,
- mechanistic differentiation to meet environmental environments,
- programmed coordination and use of planning for integration
Mention some structure elements for Duncans Moderate to high uncertainty.
Few environmental elements but each element changes often and unpredictable, e.g. H&M, music industry.
Structural elements:
- decentralized,
- teamwork,
- environmental monitoring,
- high level of coordination for innovation
- production facilities often mechanistic
Mention some structure elements for Duncans low uncertainty.
Small number of easily understood environmental elements which change slowly, e.g. Grolsch, bakeries.
Structural elements:
- centralized,
- formalized,
- mechanistic,
- low differentiation
- coordination by programs and planning
Describe capacity.
The degree to which an environment can support growth (availability to finance, customers, resource inputs and managerial skills).
Describe stability.
The extent to which there is a little change in the environment (dynamic or stable).
