Chapter 4

Question 1

What is the organizational environment?

Answer 1

All elements that exist outside of the organization boundary and can affect the organization

Question 2

What is the Organizational Domain?

Answer 2

The organization’s chosen environmental field of activity

Question 3

What are the 2 environmental sectors?

Answer 3

Task Environment and General Environment

Question 4

Explain the Task Environment and its related sectors

Answer 4

Task environment sectors have a direct impact on the organization
Sectors: industry, raw materials, market sectors, HR, and International

Question 5

Explain the General Environment and its related sectors

Answer 5

The general environment has an indirect impact on the organization
Sectors: Government, economic, sociocultural, tech, and finance

Question 6

What are the 2 reasons for how the environment influences the organization?

Answer 6

1. Need for environment information

2. Need for resources from the environment

Question 7

Name 3 characteristics of Environment Uncertainty

Answer 7

1. Pertains to task environment
2. Decision makers lack information about environmental factors
3. Increases risk of failure

Question 8

What are the dimensions for Uncertainty Framework?

Answer 8

Simple-Complex

Unstable-Stable

Question 9

Explain the Simplex-Complex dimension

Answer 9

The number of different factors or forces

Question 10

Explain the Stable-Unstable dimension

Answer 10

The rate or predictability of change

Question 11

Explain characteristics for: Low Uncertainty

Answer 11

Simple and stable

1. small # of elements
2. similar elements
3. remain same or change slowly

Question 12

Explain characteristics for: Low-Moderate Uncertainty

Answer 12

Complex and stable

1. Large # of elements
2. Dissimilar elements
3. Remain same or change slowly

Question 13

Explain characteristics for: High-Moderate Uncertainty

Answer 13

Simple and unstable

1. small # of elements
2. similar elements
3. elements change often and unpredictably

Question 14

Explain characteristics for: High Uncertainty

Answer 14

Complex and Unstable

1. Large # of elements
2. Dissimilar elements
3. Elements change often and unpredictably

Question 15

What are the 5 ways to adapt to uncertainty?

Answer 15

Mechanistic vs organic management
Positions and departments
Buffering and boundary spanning
Differentiation and integration
Planning, forecasting, responsiveness

Question 16

How do you respond to Low Uncertainty?

Answer 16

Mechanistic management
Few Departments
No boundary spanning or integrating
Low speed response

Question 17

How do you respond to Low-Moderate Uncertainty?

Answer 17

Mechanistic
Many departments
Some boundary 
Few integrating
Moderate response speed

Question 18

How do you respond to High Moderate uncertainty?

Answer 18

Organic management
Few departments
Much boundary 
Few Integrating
Fast response

Question 19

How do you respond to High Uncertainty?

Answer 19

Organic management
Many departments
Many boundaries
Many integrating
High speed response

Question 20

What is resource dependence?

Answer 20

organizations depend on the environment for resources and strive to acquire control to minimize dependence

Question 21

What is the tradeoff with interorganizational relationships

Answer 21

resources and autonomy

Question 22

How do you address resource dependence?

Answer 22

1. Establish interorganizational linkages

2. Control environmental domain

Question 23

Name 6 types of interorganizational linkages?

Answer 23

1. Ownership
2. Strategic alliance
3. Cooptation
4. Interlocking Directorates
5. Executive Recruitment
6. Advertising and PR