Zaher Charara AOU 1 IDENTIFYING ENVIROMENTAL ISSUES Rosalind Armson, John Martin, Susan Carr, Roger Spear and Tony Walsh

Zaher Charara AOU2 OUTLINE Environmental Interactions Environmental Interactions Environmental Issues Environmental Issues 1.The STEP Checklist 2.The Transformation Model 3.Mintzberg's "physiognomy ” 4. Economic Sector Analysis 4. Economic Sector Analysis

Zaher Charara AOU3 Environmental Interactions In principle organizations are divided into two types: "closed" and "open" organizations. In principle organizations are divided into two types: "closed" and "open" organizations. 1.If any organization or system is described as "closed", it would mean that there were no interactions across its boundaries. 2.Virtually all organizations can be considered open, with continual and usually extensive exchanges across their boundaries. Organizations exchange people, energy, information, expertise, equipment, money, goods and services with their environments.

Zaher Charara AOU4 Identifying Environmental Issues Because the environment is so complex, the best way to understand it is by oversimplifying your perception of it. Because the environment is so complex, the best way to understand it is by oversimplifying your perception of it. There are many methods to open up the perception of a system's environment: There are many methods to open up the perception of a system's environment:

Zaher Charara AOU5 The STEP Checklist The Step checklist includes Social, Technological, Economic and Political factors that influence the organization. The Step checklist includes Social, Technological, Economic and Political factors that influence the organization. The advantage of the STEP framework is its simplicity and wide applicability. The advantage of the STEP framework is its simplicity and wide applicability. To use this method, you work your way through the STEP list, brainstorming as many possible factors in each category. To use this method, you work your way through the STEP list, brainstorming as many possible factors in each category. 1.You ask each person to first list all their ideas privately, 2.Then you pool the ideas publicly, 3.Someone lists each idea on a blackboard as it is offered so that everyone can see all the ideas proposed. 4.Then you can merge gradually into free-for-all brainstorming.

Zaher Charara AOU6 STEP Categories Social Factors: Demographics, lifestyle, population age and social class Social Factors: Demographics, lifestyle, population age and social class Technological Factors: Technologies, available products, equipment Technological Factors: Technologies, available products, equipment Economic Factors: Inflation, market trends, economic growth Economic Factors: Inflation, market trends, economic growth Political Factors: Legislation, policies, regulations Political Factors: Legislation, policies, regulations

Zaher Charara AOU7 The Transformation Model A simple way to generate a checklist specific to your system, is to consider the organization a transformation process. A simple way to generate a checklist specific to your system, is to consider the organization a transformation process. This method involves the following: This method involves the following: 1.Draw your system using an input-output diagram that shows your system as a set of processes that transform a range of inputs into a range of outputs. 2.Inputs are: materials, energy, people, capital, expertise, technology, information. Outputs are: goods or services. technology, information. Outputs are: goods or services. 3.A well-constructed diagram should be simple, compact and informative way of answering the question:" what do we do? “ 4. Brainstorm possible environmental factors that could 4. Brainstorm possible environmental factors that could affect the inputs, the transformation process, & outputs affect the inputs, the transformation process, & outputs

Zaher Charara AOU8 Mintzberg's "physiognomy"  Physiognomy is the art of judging someone's character from their face. The "character" of the organization is very much determined by the varying natures of its groups of "players".  Mintzberg's diagram shows a clown-like face.  Mintzberg takes a power perspective, arguing that the Coalitions may be formed between external groups, and between internal and external groups.  When major decisions are being made, it is these coalitions that form the power groups representing different interests.

Zaher Charara AOU9 Cast of Players (Character of the Organization)  The Players in the organization (level 1) are the CEO, directors, line managers, operators, analysts.  Level 2 includes the owners and employee associations.  Level 3: suppliers, partners, associates, competitors, clients  Level 4: special interest groups, government agencies, general public, state and regulatory bodies (publics)

Zaher Charara AOU10 Economic Sector Analysis A final approach to analyzing the environment is to draw on economists concepts of sectors and markets. A final approach to analyzing the environment is to draw on economists concepts of sectors and markets. Economists group economic activities according to sectors. All the organizations in a particular sector produce similar products or services and tend to be affected by similar influences. Economists group economic activities according to sectors. All the organizations in a particular sector produce similar products or services and tend to be affected by similar influences. So another useful way to explore an organization's environment is to identify its sector, identify some other organizations in the same sector and try to see what is distinctive about organizations in this sector and how they relate to one another. So another useful way to explore an organization's environment is to identify its sector, identify some other organizations in the same sector and try to see what is distinctive about organizations in this sector and how they relate to one another.