Organizational Behaviour The Organization EVIRONMENT AND TECHNOLOGY

THE ORGANIZATION AS AN OPEN SYSTEM INPUTS TRANSFORMATION OUTPUTS ENVIRONMENT

COMPONENTS OR DOMAINS OF THE ENVIRONMENT The Economy Customers Suppliers Competitors Social/Political Factors Technology Human Resources Government

ENVIRONMENTAL UNCERTAINTY When the external environment is vague, difficult to diagnose and unpredictable. Depends on: the environment’s complexity –simple versus complex few versus many factors; similar versus different factors the environment’s rate of change –static versus dynamic stable versus changing; predictable versus unpredictable

Static SimpleStatic Complex Low uncertainty Low-moderate uncertainty Mechanistic Mostly mechanistic Few departments Many departments No integrating roles Low level integrating roles Dynamic SimpleDynamic Complex High-moderate uncertainty High uncertainty Mostly organic Organic Some departmentsMany departments Verbal integrating roles High level integrating roles

PREDICTABLE EFFECTS OF UNCERTAINTY ON THE ORGANIZATION As uncertainty increases, cause-and-effect relationships become less clear. Agreement on priorities becomes more difficult. Increased amount of information to be processed by the organization (increased integrating roles).

RESOURCE DEPENDENCE The dependency of organizations on the environment. To buffer the organization: –Vertical integration - taking control of sources of organizational supply and distribution through stockpiling or adding the activity to the organization. –Mergers and acquisitions - taking control of competitors to control the market or diversifying to reduce dependence on a segment of the environment.

RESOURCE DEPENDENCE To buffer the organization: –Strategic alliances - actively cooperative relationships between legally separate organizations. –Interlocking directorates - when one person serves on two or more boards of directors.

TECHNOLOGY Activities, equipment, and knowledge used to transform inputs into outputs. –Perrow –Thompson –Woodward

PERROW’S ROUTINENESS The extent to which exceptions (variety) and problem analyzability affect the task of converting inputs into outputs. Exceptions Analyzability of Problems FewMany Difficult Easy

THOMPSON’S INTERDEPENDENCE The extent to which organizational subunits depend on each other for resources, raw materials or information. Mediating technologies - pooled interdependence Long-linked technologies - sequential interdependence Intensive technologies - reciprocal interdependence

WOODWARD’S PRODUCTION TECHNOLOGIES Unit production - single or small batch, specialized production Mass productions - large batch or assembly line Process production - continuous flow