Chapter 2 Flashcards
External Environment
Factors, forces, situations, and events outside the organization that affect the performance
Economic component
encompasses factors such as interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages.
Demographic component
includes trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition
Technological Component
focuses on scientific and industrial innovations.
Sociocultural Component
is concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior.
The political / legal component
looks at federal, state, and local laws, as well as other countries’ laws and global laws. It also includes a country’s political conditions and stability.
The global component
encompasses issues associated with globalization and a world economy.
Sharing economy
asset owners share with other individuals peer to peer service, for a fee, their underutilized assets, physical assets, or their knowledge, expertise, skills, or time
Baby boomers
Born between 1946 - 64
Gen X
1965-77
Gen Y
1978 - 1994
What affects external environment?
impact on jobs and employment
Assessing environmental uncertainty
managing stakeholder relationships
Stakeholders
any constituents in an organizations environment that are affected by that organizations decisions and actions
Organizational Culture
shared values, principals, traditions, and ways of doing things that influence the way an organizations members act out
Culture is
Perceived, Descriptive, Shared
Corporate rituals
repetitive sequences of activities that express and reinforce important organizational values and goals
Material symbols or artifacts
layout of facilities, how employees dress, size of offices material perks, provided to executives, furnishing, and so forth
Language
special acronyms, unique terms to describe equipment, key personnel, customers, suppliers, processes, and products
How does organizational culture affect managers
Effect on what employees do and how they behave
Effect on what managers do
Strong cultures
cultures in which the key values are deeply held and widely shared
Strong cultures can
substitute for formal rules and regulations
create predictability, orderliness, and consistency
Planning
the degree of risk the plan should contain
whether plans should be developed by teams or individuals
the degree of environmental scanning in which management will engage
Organizing
how much autonomy should be designed into employees jobs
whether tasks should be done by individuals or in teams
the degree to which department managers interact with each other
Leading
the degree to which managers are concerned with increasing employee job satisfaction
what leadership styles are appropriate
whether all disagreements even constructive ones should be eliminated
controlling
whether to impose external controls or to allow employees to control their own actions
what criteria should be emphasized in employee performance evaluations
what repercussions will occur from exceeding one’s budget
