Ch4 The External Environment

Question 1

Define boundary spanning

Answer 1

Activities that link and coordinate an organization with key elements of the external environment

Question 2

What are buffering roles?

Answer 2

Absorb uncertainty from the environment

Question 3

Define cooptation

Answer 3

When leaders of an important sector join the organization

Question 4

Direct interlock

Answer 4

When a member of the board of directors of one organization is also on the board of directors of another organization

Question 5

Indirect interlock

Answer 5

When a member of the board of directors of company A and another member from the board of directors from company B are both members on the board of directors of company C

Question 6

Describe resource dependency theory

Answer 6

Organizations seek to minimize their dependence on other organizations for supply of scarce resources in its environment and find ways of influencing them to make resources available

Question 7

What are the dimensions of environment

Answer 7

• Complexity (number of elements, disparity elements, strength, interaction among the elements)
• Dynamism (or speed of changes)
• Richness (munificence)

Question 8

To control environmental resources and organization might want to establish interorganizational linkages. Give some examples of interorganizational linkages.

Answer 8

• Ownership
• Formal strategical
• Co-optation, interlocking directorates
• Executive recruitment
• Advertising and public relations

Question 9

Describe the differences between organic and mechanistic management processes

Answer 9

A mechanistic management process is characterized by rules, procedures, and clear hierarchy of authority.
With an organic management process decision-making authority is decentralized.

Question 10

List five strategies for symbiotic relations by formality

Answer 10

1. Developing a good reputation (informal)
2. Co-optation
3. Interlocking directorate
4. Strategic alliances
5. Mergers and takeovers (formal)

Question 11

Define co-optation

Answer 11

Co-optation occurs when leaders from important sectors in the environment are made part of an organization

Question 12

Define interlocking director

Answer 12

Interlocking directorate is a formal linkage that occurs when a member of the Board of Directors of one company sits on the Board of Directors of another company.

Question 13

List four strategies for competitive relations by level of formality

Answer 13

1. Collusion and cartel (informal)
2. Third-party linkage
3. Strategic alliances
4. Mergers and takeovers (Formal)