Fundamentals of Management: Organizational Environment

Topics: World Trade Organization, International trade, Globalization Pages: 27 (1905 words) Published: September 19, 2015
BU8601: FUNDAMENTALS
OF MANAGEMENT


Lecture 2:



Organizational Environment
KW CHING
kwching@ntu.edu.sg
kwching@singnet.com.sg



What do you
understand by the
term “organizational
environment”?

The conditions within which the business
operates, the sum total of all the factors which can
influence the behaviors of the business and
how it develops.
Do you know
The conditions that can influence the behaviours of a
business exist both inside and outside the organization.

These conditions include whatever that goes
on inside and outside the organization.
These behaviors of the business include
whatever the people inside and outside the
organization think and do.

Do you know
The Business Environment has gone from local to global.



Why should managers be concerned
with understanding and managing
the organizational environment?

Organizations do not exist in a vacuum
Do you know?
Management may be viewed as a process that
integrates the individuals, the organization, and the
organizational environment.

Management as an Integrating Activity
Individuals – Organization – Environment
Environment
(Forces)
Organization
(Design )
Individuals / Groups
(Behavior)
Conflicts in
Needs & Demands
Opportunities & Risks
to the Organization

Forces that influence behaviors
in the Organizational Environment

The elements of the world
is constantly changing




The external organizational
environment includes all outside
elements that affect the organization
General environment:


Affects organizations indirectly



Task environment:




Organizational ecosystem:




Sectors that conduct transactions with the
organization
Formed by the interaction among a
community of organizations in the
environment

Internal environment:


Elements within the organization boundaries



What elements / forces in
the “internal environment”
of the organization do you
think can and will influence
the behaviours of the people
in the organization and how
the organization develops ?

Internal Environment
Ownership
Size /
People /
Technology

Forces

Products /
Services

Organizational
Organizational
Structure Organizational Culture
Strategy



What elements / forces in
the “task environment” of
the organization do you
think can and will influence
the behaviours of the people
inside and outside the
organization and how
the organization develops?

Task Environment
Workers
Customers

Suppliers
Forces
Distributors

Competitors

Business Partners



What elements / forces in
the “external environment”
of the organization do you
think can and will influence
the behaviours of the people
inside and outside the
organization and how the
organization develops?

General Environment
Political

Economic

Sociological
Technological
Demographic

Cultural
Forces

Environmental

Legal

Organizational Ecosystem

includes organizations
In all sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to survive.



Globalization influences all other
aspects of the external environment





New competitors, customers, suppliers
Changes in social, technological, and
economic trends

All organizations must compete and
think globally





Economic power has shifted to China
and India
The global environment is complex and
ever-changing





Massive advancements in a specific
industry and society
Advances drive competition and help
innovative companies gain market share

Demographic characteristics, norms,
customs, and values






Connected Generation or Generation C has
woven technology into every aspect of life
U.S. population is aging
Growing diversity has implications for
business



Economic health of the...
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