Unit 2: Environment Flashcards
what is the boundary of org env?
differentiation between inside/outside activities
- what will be outsourced? what will be developed internally?
who is responsible for establihsing the boundaries of org env?
Top-level managers
what is the general env?
Broad factors, trends & conditions that affect ALL org
-e.g. tech changes, economy, political changes, social/cultural factors
Should MONITOR
What is the SPECIFIC env? & examples
factors with immediate relevance for the org.
e.g. unions, suppliers, org of customers
Narrow & Broad
what are the narrow and broad aspects of the specific org env?
Narrow: Groups that the org depends on (internal employees, suppliers, customers)
Broad: groups that affect & are affected by org (protest groups, communities, media)
what is the actual org env?
the objective/measurable env
what is the perceived env?
managers’ interpretation of the environement
how does the perceived env affect DM
their perception guides DM. Incorrect perceptions = failures/incorrect decisions
what are the 2 types of env change?
Static
Dynamic
whats the difference between static & dynamic change?
Static: no technological change, no pressure (legal/political)
Dynamic: rapid, unpredictable change
what are the 3 dimensions for analysing impact?
Stability
Complexity
resource availability
Outline STABILITY as a factor for analysing impact of change
Extent of dynamic env. elements
Outline COMPLEXITY as a factor for analysing impact of change
no. of stakeholders
amount of knowledge needed to understand environment
Outline RESOURCE AVAILABILITY as a factor for analysing impact of change
level of resources available
high competition = low resources = uncertainty
What causes uncertainty?
the 3 elements of analysing impact (stability, complexity, resource availability)
Who proposed the types of uncertain environments?
Emery & Trist
What are the 4 types of uncertain environments?
Placid & clustered
Placid & randomised
Disturbed & reactive
turbulent
which is the most uncertain type of env?
Turbulent
outline PLACID & CLUSTERED as a type of uncertain env
unchanged
env elements are interdependent
outline PLACID & RANDOMISED as a type of uncertain env
slight, slow, predictable changes
elements NOT interdependent
outline DISTURBED & REACTIVE as a type of uncertain env
many competitors influencing the org
only adapt after the impact
outline TURBULANT as a type of uncertain env
dynamic, uncertain, continuous change
difficult to understand causes of change
what are the 4 ways to deal with env challenges?
control
manage boundaries
inter-org alliances
response to decline
what are the 5 elements of the env that you can control?
Control the elements that you can..
- norms of rationality (isolate the core of the org from env)
- control fluctuations
- forecasting (anticipate & adapt)
- rationing
-inter-org coping (coalition, competition, bargaining)
how do managers manage boundaries?
Reduce governance costs
Reduce opportunism (for other parties to take advantage)
How would managers tackle high opportunism
increase governance costs
What are boundary spanning roles
they interact with members inside & outside the org to facilitate innovation & synergy
why are boundary spanning roles created?
to process environmental info
& to represent the organisation as having env influence
what are inter organisational alliances?
arrangements between 2 or more organisation that offer opportunity
what are the potential problems of inter organisational alliances
contrast in cultures
conflict between members
unrealistic expectations
what is decline
when the org is having difficulty adapting to environment.
Involuntary & leads to erosion of resources
A lack of control & understanding
What are the 2 possible responses to decline?
Population ecology theory: pessimistic, natural selection
Strategic change: optimistic, manager deals with decline
What are the 2 basic approaches to manage decline?
Recentralisation of DM
Reallocation of resources
what are the 3 types of relationships between countries?
Complementary: agree
Competition: win
Adversarial: destroy
what is a multinational company?
From one countries with affiliated in other countries
What is a transnational enterprise?
when there’s an unclear distinction between the original org & it’s affiliated
Dispersed resources
What new skills are needed in a transnational enterprise?
mobility
flexibility
understanding/utilisation of cultural diversity
able to competent in other countries
what new training is is needed in a transnational enterprise?
language
cultural assimilation
field experiences
