Ch 3 - Mging org env

MANAGING O RG A N IS AT IO N A L ENVIRONMENTS
CHAPTER OVERVIEW
This chapter looks at: The manager’s role in organisational environments Differences between the mega- and the task-environment Views of the organisational-environment interface Characteristics of the environment How organisations manage their environments The nature of organisational culture How organisational cultures can be changed
CORNERSTONES OF MANAGEMENT:
CHAPTER 3
3.2 TYPES OF BUSINESS ENVIRONMENT
1. Organisational Env: all internal & external elements affecting an organisation
Competitors
Suppliers Labour supply
CORNERSTONES OF MANAGEMENT:
CHAPTER 3
3.6 INTERNAL (MICRO) ENVIRONMENT
Internal culture of organisation – corporate culture
CORNERSTONES OF MANAGEMENT:
CHAPTER 3
3.14 CHANGING ORGANISATIONAL CULTURES
Employee resistance to change requires special support by manager Communication – of new environmental factors, demands … Inviting participation by employees in determining alternative possible solutions Negotiation - of preferred/agreed methods of change Coercion – use of formal power, as a last resort Executive support – top manager’s positive modelling of new behaviour
CORNERSTONES OF MANAGEMENT:
CHAPTER 3
3.1 INTRODUCTION
Environmental pressures affect way managers operate Change environment – identify & respond to opportunities. Change processes to meet environmental demands Select cost-effective responses to meet bottom-line goals Guide structures/strategy to meet & improve core competencies Gain competitive advantage – exercise strategies better/faster than opposMANAGEMENT:
CHAPTER 3
3.12 ORGANISATIONAL CULTURE
Visible: behaviours easily noticed by customers, employees, visitors
Invisible: values, beliefs people consciously have & which explain their behaviours – core values such as commitment, innovation, integrity, team work, customer service
CORNERSTONES OF MANAGEMENT:
CHAPTER 3
3.5 TASK ENVIRONMENT
Specific environment the organisation interacts with to conduct its business – stakeholders
Customers Regulations
Co-opting – attract key people of influence to the executive, board Strategic alliances – cooperate with other organisations for mutual benefit Trade associations – pool resources using trade/professional groups Political activity – use ‘lobbying’ tactic to influence legislators
2. Mega (macro) Env: external & indirect effects of the whole industry or economy
3. Task (specific) Env: external & direct factors to affect operations/performance 4. Internal (micro) Env: elements within organisations – operating structures, employees, management + culture
Advertising and public relations – use mass media to promote goods/services Boundary spanning – create roles to interact with the environment Recruiting – attract candidates with close ties to environment & issues Negotiating contracts – seek favourable agreements
CORNERSTONES OF MANAGEMENT:
CHAPTER 3
3.11 APPROACHES TO ENVIRONMENTAL UNCERTAINTY (2)
Environmental Influence: change environment to meet organisational needs
Population ecology (natural selection) model: other organisations influence success or failure due to environmental conditions Resource dependence model: relationships formed to manipulate situations & reduce resource dependency Customer-driven model: emphasises needs of customers for high quality, low cost, ontime delivery
Buffering – stockpile inputs/outputs to cope with fluctuations Smoothing – action to reduce impact of market variations Forecasting – predict future conditions to make adjustments Rationing – allowing limited access for a product/service
Technological: scientific, technology of wider society
International: foreign events affecting domestic markets/economy Legal-Political: philosophy of ruling party + its laws, regulations Economic: economic health of country/region
Day-to-day management of organisations operations
Systems of shared beliefs, values that develop & guide behaviours of organisational members
CORNERSTONES OF MANAGEMENT:
CORNERSTONES OF MANAGEMENT:
CHAPTER 3
3.3 BUSINESS ENVIRONMENT
CORNERSTONES OF MANAGEMENT:
CHAPTER 3
3.4 MEGA ENVIRONMENT
Socio-cultural: demographics, norms, customs, values of wider culture
Underlying: assumptions, values, beliefs deeply held but not recognised by members themselves