strategies of organisational environment
TRANSCRIPT
STRATEGIES OF ORGANISATIONAL ENVIRONMENT
INTRODUCTION
An organization faces two problems while designing the strategies : a) Interdependence between organization and the environment. b) Uncertain exchange between the organization and the environment.
The organization has to overcome these two problems to deal with the environment.
There are THREE strategies to over come it.
TYPES OF STRATEGIES
THREE STRATEGIES
• Strategies for insulating the organization from the environmental forces.
• Strategies for gaining the control over certain aspects of the environment.
• Strategies for organizational adaptation.
INSULATION OF THE ORGANISATION
Minimizing the negative impact of environmental forces.
Since the organization is an open system, this can be done only selectively.
Strategy of boundary spanning can be adopted as an alternative like marketing research, environmental analysis etc
INSULATIONS
BUFFERING LEVELING
RATIONING
Insulations are:
Buffering : i) avoids impact of uncertainty. ii) acts as a shock absorber. Smoothening or leveling: i) adjusting the supply according to the demandii) increase and decrease of demand. Rationing: i) method of curtaining demand.ii) partial fulfilment of demand.
GAINING CONTROL OVER THE ORGANISATION
• The basic objective of this type of strategy is to gain control over some aspects of the environment.
• This is to reduce the dependence of the organization on the environment.
• This can be done through number of ways like-
GAINING CONTROL OVER THE ORGANISATION
AGREEMENT
CREATION OF PRESTIGE
LOBBYING
GAINING CONTROL OVER THE ORGANIZATION
Creation of Prestige- Environmental resources are allocated to those areas with better usage.
i) It helps attracts environmental resources ii) It helps reduce dependence on environment
Agreement: To gain control over the environment, an organization may enter into agreement with environmental elements on which it depends
i) cooperative strategy. ii) reduces uncertainty in the environment
Cooptation : Process of absorbing new elements into the policy making structure to avert threats and maintain stability. i) create awareness and common understanding to reduce environmental uncertainty.
GAINING CONTROL OVER THE ORGANIZATION
Coalescing : Two or more organization are merged which have some sort of interdependency in the form of procurements of inputs, disposal of outputs etc.
i) Merged environments mean better control of environment and pooled resources
Procurement of Key Personnel : In an organization, it can enhance its capacity to overcome the environmental pressure.
Lobbying: Process of convincing the various elements of the environment in favor of the organization. i) Effective in an association ii) Eg- Federation of Indian Chambers of Commerce and Industry
ORGANIZATIONAL ADAPTATION
One of the most frequently adopted strategies to respond to the environment by organizations is by:
Adaptation of Organization Structure: designed according to needs of the environment.
For eg, Mechanical structure- stable environment
Organic structure- Dynamic environment Adaptation of Systems and Processes: Various
organizational systems processes like control & planning system, leadership system, information system human designed according to the needs of the environment to be able to cope with the environment
ORGANI ZATIONAL ADAPTAT ION
ORGANISATIONAL STRUCTURE
ORGANISATIONAL SYSTEMS AND PROCESSES
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