Environments Shape Organizations
There is an old real-estate joke about the three most important factors in the business of realty, the punch line being “Location Location Location”. Though made in jest this idea is not far from the truth since the area in which any business type organization is established will typically play a big part in its overall success. On a much bigger scale the success of any business is also greatly dependant on the state of the global environment as well. Trends in culture and practices from other organizations will all ultimately have a huge impact on the way a business functions. It is the focus of this paper to explore the relationship between any business type organizations and the environments that influence its success both short term and long term. Background
A great many works have been written and studies performed to find the correlations between an organization and its environment. Most of these studies focus on how the environment shapes an organization with only a few focusing on the reverse (Barley, 2010). This study will utilize several works to illustrate its point some will show how environments shape organizations and others explore the opposite. The first of these works is an Article written by Mark Bodnarczuk which discusses several global forces that will have an effect on organizational culture. Bodnarczuk’s (2010) article states:
The Breckenridge Institute® has identified Four Global Forces that will shape organizational culture for the next 50 years: a) Advances in Science and Technology, b) Global Redistribution of Knowledge, Power, and Wealth, c) Competing Political, Cultural, and Religious Ideologies, and d) Sustainability of the Physical Environment. Bodnarczuk’s (2010) article then goes on to reinforce this statement by defining and giving examples of each of the four forces such as: * The 20th Century discoveries in quantum physics that led to the development of solid-state electronics, information technology, global telecommunications, the media, and the Internet combined with the mapping of the human genome. * The economic and educational growth of developed countries such as the U.S * The development of different social ideologies and as traditional views are increasingly undermined, people become more deeply committed to maintaining and defending their way of life, sometimes even by force and intimidation. * The process of creating an ecologically sustainable society and while the goal of a sustainable society is a popular notion, it has been difficult to implement, especially when it impacts business and economic growth. All four forces are in fact constants that continue to advance and change with little to no chance of being stifled or trended towards predictable conclusions.
Bodnarczuk’s (2010) concludes that:
Organizations cannot control the direction that these powerful global forces will take over the next 50 years, but they can control how they respond to these forces. In fact, Harnessing the Power of Culture(TM) within an organization and transforming it into a more predictable resource is the single biggest factor in transforming these challenges into a distinct a competitive advantage. The entire article illustrates how large an impact the global environment can have on any organization. His closing statement rings true as one of the basic truths behind maintaining a successful organization is to keep progressing in correlation with the constantly changing trends of its external environment. The next work is an article by Ryszard Barnat that details the factors utilized to shape effective organizational strategies. Barnat’s (2005) article lists and defines the types of environment as: 1. The macro-environment, or general environment (remote environment) - that is, economic, social, political and legal systems in the country. 2. Operating environment -...