The organization's environment & corporate culture

Question 1

What is the organizational environment?

Answer 1

The organizational environment is the context within which management is practiced.

Question 2

What are the 3 different parts of an organizational environment

These impact the need for organizational change

Answer 2

1. The External Environment (general & task)
2. The Internal Environment (organizational culture)
3. The Organization-Environment Relationship

Question 3

What makes up the external environment?

Answer 3

Task + General

Question 4

What is the external organizational environment?

Answer 4

This includes all outside elements that affect the organization

Question 5

stakeholders…

Describe the task environment

Answer 5

The task environement is the set of forces that affects an organization’s ability to obtain inputs & dispose of outputs. The actions of the forces of the task environment significantly impact short-term decision making

Changes in the task environment will directly affect the business enviro

Question 6

What are the dimensions/forces of the task environment?

Answer 6

customers, competitors, suppliers & labour market (people available for hire)

Question 7

task + general = external

Describe each dimension of the task environment

Answer 7

Customers- an organization’s success depends on its response to customer needs & wants
Competitors- high levels of rivalry often means lower prices
Suppliers- can restrict access to important input goods
Labour market- organizations need well-trained & qualified workers

Question 8

What is the general environement?

Also known as…

Answer 8

These are the wide ranging forces that affect the organization and its task environment.

Macro

Question 9

T.E.I.L.N.S

what are the dimensions of the general environment

Also known as…

Answer 9

Technological,Natural, Socio-cultural, Economics, Legal/Political & International

Macro

Question 10

T.E.I.L.N.S

Explain each dimension of the general environment

Answer 10

Technological- technological advancements impact organizations and managers eg. new machinery

Natural- environmentalists influence decision making eg. reduce pollution, oil spills etc

Socio-cultural- changing demographic characteristics eg. changing/aging population

Economics- consumer purchasing power, unemployment, inflation etc

Legal/Political- government regulation & political activities eg minimum wage laws etc

International- globalization influences organizations eg. new competitiors,trends etc.

Question 11

What is the Organization-Environment Relationship?

Answer 11

1. The environment creates uncertainty for managers
2. Managers must respond & design adaptive organizations- changing management philosophy
3. Organic (flexible & decentrilized) vs Mechanistic (rigid & bureacratic) Organizations/Structure

Question 12

What is the internal environment: corporate culture?

Answer 12

Corporate cultutre is the set of key values, beliefs, understandings & norms that memebers of an organization share

Question 13

What are the 2 levels of corporate culture?

Answer 13

1. Visible- Culture that can be seen at the surface level eg. dress, office layout etc
2. Invisible- Deeper values & shared understandings held by organization members

We should be able to see both cultures

Question 14

A.A.I.C

What are the 4 types of corporate cultures?

Answer 14

Adaptability, Achievement, Involvement & Consistency

Adaptability & Involvement are most useful