LINGKUNGAN ORGANISASI Pertemuan Ke 16 Oleh: CHOIRUL SALEH

THE ENVIRONMENT OF ORGANIZATION We are mentioned earlier, organization are open system that import resources from the environment and transform these resources into outputs that are exported into the environment This open system view of organization illustrates that an organization is subsystem of a large system (supra system) which is the organization’s environment. In general, the supra system is influenced by the organization and influences the organization. To understand the different levels of influence, it may be useful to think of the environment in two ways. 1. The societal (general) environment which affects all organization in given society. 2. The specific (task) environment which affects the individual organization more directly

The General Environment Various researchers have suggested many general environmental domains which affects all organizations. General environmental domains for organizations: Cultural Including the historical background, ideologies, values, and norms of the society 2. Technological The level of scientific and technological advancement in society. 3. Educational The general literacy level of the population. The degree of sophistication and specialization in the educational system 4. Political. The general political climate of society. The degree of concentration of political power. The nature of political organization (degree of decentralization, diversity of functions, etc.). The political party system 5. Legal Constitutional considerations, nature of legal system, jurisdictions of various governmental units. Specific laws concerning formation, taxation, and control of organizations

The General Environment (Cont) 6. Natural resources The nature, quantity, and availability of natural sources, including climatic and other conditions 7. Demographic The nature of human resources available to the society: their number, distribution, age,, and sex. Concentration or urbanization of population is a characteristic of industrial societies 8. Sociological Class structure and mobility. Definition of social roles. Nature of social organization and development of social institutions 9. Economic. General economic framework, including the type of economic organization – private versus public ownership. The centralization or decentralization of economic planning; the banking system; and fiscal policies. The level of the investment in physical resources and consumption characteristic

Figure 1. Relevant components of the specific (task) environment for a typical organization Costumer Components Distributors of product or service Actual users of product or service Suppliers Components New materials suppliers Equipment suppliers Products parts suppliers Labor supply Competitor Component Competitors for suppliers Competitors for customers Socio-political Component Government regulatory control over the industry Public political attitude towards industry and its particular product Relationship with trade unions with jurisdiction in the organization Technological Component Meeting new technological requirements of own industry and related industry in production of product or service Improving and developing new products by implementing new technological advances in the industry

Figure 2. Relationship of General and Task Environments to The Organization

Figure 3. Characteristic of Environmental States SIMPLE COMPLEX Static CELL 1: Low Perceived Uncertainty Small number of factors and components in the environment Factors and components are somewhat similar to one another Factors and components remain basically the same and are not changing CELL 2: Moderately Low Perceived Uncertainty Large number of factors and components in the environment Factors and components are not similar to one another Factors and components remain basically to the same Dynamic CELL 3: Moderately High Perceived Uncertainty Factors and components of the environment are in continual process of change CELL 4: High Perceived Uncertainty Factors and components of environment are in a continual process of change

Table 4. Environmental/Structural Matching SIMPLE KNOWLEDGE ENVIRONMENT COMPLEX KNOWLEDGE ENVIRONMENT Placid environment characteristic I. Mechanistic a. Little uncertainty b. Little change c. Standard work processes for control d. Bureaucratic organization form II. Mechanistic a. Moderately low uncertainty b. Little change but a large number of variables in the environment c. Standard work skills for control d. Decentralized bureaucratic form Turbulent III. Organic a. Moderately high uncertainty b. Small number of variables but a lot of change c. Tight personal control d. Centralized organization IV. Organic a. High uncertainty b. Large number of variables and a lot of change c. Mutual adjustment for control d. Decentralized organization form

The External Environment Global Suppliers Customers Economic Political The Organization Public Pressure Groups Competitors Demographic Sociocultural Technological

The External Environment Laws and politics Economy Technology Demographics Social values Suppliers New Entrants Substitutes Rivals Buyers Organization Competitive Environment Macro environment

Two Organization Design Approaches Vertical Structure Routine Tasks Rigid Culture Competitive Strategy Formal Systems Horizontal Adaptive Empowered Roles Collaborative Shared Information Organizational Change in the Service of Performance Mechanical System Design Natural System Design Stable Environment Efficient Performance Turbulent Environment Learning Organization Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)

The Macro Environment The macro environment most general elements in the external environment that can potentially influence strategic decisions all organizations are affected by the general components of the macro environment Laws and regulations impose strategic constraints and provide opportunities regulators - specific government organizations in a firm’s more immediate task environment have the power to investigate company practices and take legal action to ensure compliance with the laws

The Macro environment (cont.) The economy created by complex interconnections among economies of different countries important elements include interest rates, inflation rates, unemployment rates, and the stock market economic conditions change and are difficult to predict Technology creates new products, advanced production techniques, and improved methods of managing and communicating strategies that ignore or lag behind competitors in considering technology lead to obsolescence and extinction

The Macro Environment (cont.) Demographics measures of various characteristics of the people comprising groups or other social units age, gender, family size, income, education, occupation workforce demographics must be considered in formulating human resources strategies population growth influences the size and composition of the labor force immigration also is a significant factor increasing diversity of the labor force has both advantages and disadvantages must assure equal employment opportunity

The Macro environment (cont.) Social issues and the natural environment management must be aware of how people think and behave the role of women in the workplace providing benefits for domestic partners of employees protection of the natural environment

Competitive Environment comprises the specific organizations with which the organization interacts Michael Porter - defined the competitive environment successful managers: react to the competitive environment; and act in ways that actually shape or change the competitive environment

Competitive Environment New entrants Suppliers Customers Substitutes Rival firms

Competitive Environment (cont.) Competitors competitors within an industry must deal with one another organizations must: identify their competitors analyze how competitors compete react to and anticipate competitors’ actions competition is most intense: where there are many competitors when industry growth is slow when the product or service cannot be differentiated

Competitive Environment (cont.) Threat of new entrants barriers to entry - influence the degree of threat conditions that prevent new companies from entering an industry include government policy, capital requirements, and brand identification, cost disadvantages, and distribution channels Threat of substitutes technological advances and economic efficiencies may result in substitutes for existing products substitutes can limit another industry’s revenue potential companies need to think about potentially viable substitutes

Competitive Environment (cont.) Suppliers provide the resources needed for production powerful suppliers can reduce an organization’s profits international labor unions are noteworthy suppliers dependence on powerful suppliers is a competitive disadvantage power of supplier determined by: availability of other suppliers from whom to buy the number of customers for the supplier’s products switching costs - fixed costs buyers face if they change suppliers close supplier relationship is the new model for organizations

Competitive Environment (cont.) Customers purchase the products or services the organization offers final consumers - purchase products in their final form intermediate consumers - buy raw materials or wholesale products before selling them to final consumers customer service - giving customers what they want, the way they want it, the first time disadvantageous to depend too heavily on powerful customers powerful customers make large purchases and/or have other suppliers

Organizational Stakeholders

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