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ENVIRONMENT OF ORGANISATION
12/6/2018 RMK252 ENVIRONMENT
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ENVIRONMENT OF ORGANISATION
External Environment International Dimension Define Information ENVIRONMENT OF ORGANISATION Uncertainty & Dependence Management 12/6/2018 RMK252 ENVIRONMENT
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ORGANISATIONAL ENVIRONMENT
The Rise of Classical Theory The Challenge of Change External Environment 12/6/2018 RMK252 ENVIRONMENT
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The Rise of Classical Theory
The Neo-Human Relation Movement The Contingency Approach The System Approach The Quantitative School The Behavioral Sc School Classical Management Theories 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 Protes Movement (60s – 70s) Labour Shortage WW 11( ) Deming Lecture on Quality in Japan WW 1( ) IBM PC Introduced) The Great Depression 12/6/2018 RMK252 ENVIRONMENT
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ORGANIZATION AND MANAGEMENT The Challenge of Change
Preparing for the Future Major Changes Includes: Paradigm Shifts Chaos Theory Workplace Diversity Merger & Acquisition Not-for-profit Organization Globalization 12/6/2018 RMK252 ENVIRONMENT
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specific (direct impact) 2 types general (indirect impact)
EXTERNAL ENVIRONMENT Definition: “All elements outside an organisation that are relevant to its operation” Stoner (92:63) specific (direct impact) 2 types general (indirect impact) 12/6/2018 RMK252 ENVIRONMENT
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ORGANISATION AS A SYSTEM AND ITS ENVIRONMENT
Greatest uncertainty Strategic Level Mediator Economic and technical rationality Coordinative Level Operating Level Input from environment Close Output to environment Activity process Environmental Forces Open 12/6/2018 RMK252 ENVIRONMENT Boundaries
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THE GENERAL & SPECIFIC ENVIRONMENTS OF AN ORGANISATION
Social Variables Technological Variables Competitors Customers Financial Institution Supplies THE ORGANISATION Labour Union Govern-ment Special Interest Group The Media Economic Variables Political Variables 12/6/2018 RMK252 ENVIRONMENT
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SPECIFIC (DIRECTION-ACTION) ENVIRONMENT
Customers Supplier General - Specific (vendors) Government - Regulative Law Special Interest Group – NGO’s Media - wide coverage and immediate - ‘Fishbowl effect’ Labour Unions – collective bargaining power Financial institution – loans Competitors - to increase market share (i) gain additional customers, (ii) beat other competitors. Technological Components - meeting new techniques requirements of own industry. 12/6/2018 RMK252 ENVIRONMENT
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GENERAL ENVIRONMENT (INDIRECT ACTION)
SOCIAL VARIABLES Demographic (i) race segment (ii) age group (iii) birth rate (iv) sex Lifestyle (i) inc. in single parent (ii) inc. women in labour force (iii) towards better education Social value (i) work value (ii) Japan – lifetime (iii) US – participative (iv) French – rigid/formal 12/6/2018 RMK252 ENVIRONMENT
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GENERAL ENVIRONMENT (INDIRECT ACTION)
ECONOMIC VARIABLES General Economic Conditions Indicator (i) GDP, income percapita expenditure; (ii) Saving, investment; (iii) Prices, wages and productivity; (iv) Labour force; (v) Government activities; & (vi) International transaction. 12/6/2018 RMK252 ENVIRONMENT
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GENERAL ENVIRONMENT (INDIRECT ACTION)
POLITICAL VARIABLES Political climate that affects organisations Regulations Policies TECHNOLOGICAL VARIABLES Technological Development - Computer technology Aviation technology Automobile technology Construction technology 12/6/2018 RMK252 ENVIRONMENT
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THE INTERNATIONAL DIMENSION
Globalization – borderless world. Multinational companies Uncertainty and Dependence Environment Factors Affecting an Organisation’s Uncertainty and Dependence Uncertainty More differentiated Changing Numerous interconnection among its various elements Dependent Required resources are not widely availabled Resources not evenly distributed Increasing connectedness 12/6/2018 RMK252 ENVIRONMENT
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MANAGERS’ PERCEPTION OF THE ENVIRONMENT
Manager Action Influence specific environment Monitoring general environment Increasing connectedness General Environment Goals and values Technology Structure Human Relationships Managerial Processes Decision that influence Managerial Perception Specific Environment 12/6/2018 RMK252 ENVIRONMENT
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CONSTRUCTION ENVIRONMENT
SUBCONT-RACTORS SUPP-LIERS INTERNATIONAL MANAGE-MENT NATIONAL LABOUR LOCAL CLIENTS PLANT ORGANISATION CONSULTANTS FINANCE PROJECT INPUTS OUTPUTS CONVERSION POLITICS & LAW TECHNOLOGY ECONOMICS SOCIOLOGY THE ENVIRONMENT 12/6/2018 RMK252 ENVIRONMENT
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LOCAL COMMUNITY GROUPS
ECONOMICS SOCIETY Environmental Levels REGULATORY AGENCIES GENERAL ENVIRONMENT GOALS CREDIT-ORS Dept 1 Dept 2 OUTPUTS INPUTS INTERNAL ENVIRONMENT SUPPLIERS COMPETITION EFFICIENCY FEEDBACK TRADE UNIONS ETC. LOCAL COMMUNITY GROUPS FINANCIERS SHAREHOLDERS OPERATING ENVIRONMENT LAW POLITICS TECHNOLOGY 12/6/2018 RMK252 ENVIRONMENT
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THE END 12/6/2018 RMK252 ENVIRONMENT
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THANK YOU 12/6/2018 RMK252 ENVIRONMENT
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