the impact of environment

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Chapter 6 The Impact of Environment

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- The Organization’s Environment - The Changing Environment - Adapting to a Changing Environment - Framework for Response to Environment - Dependence on External Resources - Influencing External Resources

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Page 1: The impact of environment

Chapter 6

The Impact of Environment

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Agenda

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The Organization’s Environment

The Changing Environment

Adapting to a Changing Environment

Framework for Response to Environment

Dependence on External Resources

Influencing External Resources

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Agenda

Chapter 6: The Impact of Environment ||| Page 7

The Organization’s Environment

The Changing Environment

Adapting to a Changing Environment

Framework for Response to Environment

Dependence on External Resources

Influencing External Resources

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The Organization’s Environment

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Task

General

International

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The Organization’s Environment

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Environment

Task Industry

Sector

Raw Material Sector

Market Sector

Human Resources

Sector

International Sector

Task Environment

Affects Directly

Influences operations and

performances

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The Organization’s Environment

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NETFLIX BLOCKBUSTER

Example

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The Organization’s Environment

Chapter 6: The Impact of Environment ||| Page 11

Reynolds Aluminum Steel Cans

Example

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The Organization’s Environment

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Generation C

Example

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The Organization’s Environment

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Environment

General Government

Sector

SocioculturalSector

Economic Condition

Sector Technology

Sector

Financial Resources

Sector

General Environment

Affects Indirectly

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The Organization’s Environment

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Green Movement

Example

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The Organization’s Environment

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Online P-to-P lending networks

Example

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The Organization’s Environment

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Cocoa Bean

International Environment

Example International

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Agenda

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The Organization’s Environment

The Changing Environment

Adapting to a Changing Environment

Framework for Response to Environment

Dependence on External Resources

Influencing External Resources

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The changing environment

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How does environment influence an organization?

Stable-Unstable

Simple-Complex

Homogeneous- Heterogeneous

Amount of Resources

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The changing environment

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How does environment influence an organization?

Stable-Unstable

Simple-Complex

Homogeneous- Heterogeneous

Amount of Resources

Environment Organization

The need for information about the environment

The need for resources from the environment

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The changing environment

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Environmental Uncertainty

Uncertainty :

• The decision makers do not sufficient information about environment factor. • Having a difficult time predicting external change.

Stable-Unstable

Simple-Complex

Organization’s environmental uncertainty means focusing on Task Environment

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The changing environment

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Simple-Complex Dimension

• Concern environment complexity: number and dissimilarity of external elements (Competitor, Supplier, Industry Changes, Government Regulation)

• External element: A few competitor, Supplier, Customer s • Human Resource is not a problem • Social change have little impact Does not have to deal with: • Complex technologies • Government regulation

• Interact with numerous suppliers, customers, contractors, partners

• Complex technologies • Numerous ever-changing

government regulation • Significantly affected by

international event , legal and financial systems

• compete for scarce resource

Simple Environment Complex

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The changing environment

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Stable-Unstable Dimension

• Stable-Unstable Dimension refers to whether the environment in which organization operates is dynamic.

• Environmental elements remain

essentially the same over period of month or year

Environmental elements shift rapidly : • Customer interest shift • New technology are introduced • Competitors react aggressive move

Advertising New product New service

Stable Unstable

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The changing environment

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CLIP

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Assessing Environmental Uncertainty

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CLIP

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Adapting to a Changing Environment

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Building Relationships

Differentiation and Integration

Adding Positions and Departments

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The human resources department

The marketing department

The legal departments

E-business departments

Adapting to a Changing Environment

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Buffering roles

Adapting to a Changing Environment

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Boundary Spanning

Adapting to a Changing Environment

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Business intelligence

Adapting to a Changing Environment

ซอฟตแวรทน ำขอมลทมอยเพอจดท ำรำยงำนในรปแบบตำงๆ ทเหมำะสมกบมมมองในกำรวเครำะห และตรงตำมควำมตองกำรของผใชงำน และใชส ำหรบวเครำะหขอมล ของงำนในมมมองตำงๆ ตำมแตละแผนก เชน • วเครำะหกำรด ำเนนงำนของบรษทฯ เพอกำรตดสนใจดำนกำรลงทนส ำหรบผบรหำร • วเครำะหและวำงแผนกำรขำย / กำรตลำด เพอประเมนชองทำงกำรจ ำหนำย ฯลฯ • วเครำะหสนคำทท ำก ำไร สงสด / ขำดทนต ำสด เพอกำรวำงแผนงำนดำนกำรตลำด และกำรผลต • วเครำะหปจจยทมผลกระทบตอยอดขำยของสนคำ ฯลฯ • วเครำะหขอมลเกยวกบคแขงขน ฯลฯ

ระบบ BI ของคณนนครอบคลมทกสวนขององคกร แทนทจะสำมำรถใชงำนไดเฉพำะกลมบคคลหรอในทมไอทเทำนน ดวยเทคโนโลยตำงๆของไมโครซอฟท ระบบ Business Intelligence สำมำรถผสำนเขำกบธรกจของคณไดอยำงเปนหนง ชวยใหทกคนสำมำรถปฏบตหนำทของตนเองไดดวยขอมลอนมประสทธภำพ ลดคำใชจำย เพมผลตผลของงำน และผลกดนธรกจของคณใหกำวหนำยง

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Adapting to a Changing Environment

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Adapting to a Changing Environment

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Adapting to a Changing Environment

Organizational Departments Differentiate to Meet Needs of Subenvironments

President

Manufacturing Department

Manufacturing

Subenvironment

Raw materials Labor Suppliers Production equipment

R&D Department

Scientific

Subenvironment

Scientific Research journals centers

Professional associations

Sales Department

Market

Subenvironment

Customers Advertising agencies

Distribution system Competitors

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Adapting to a Changing Environment

Differences in Goals and Orientations among Organizational Departments

Characteristic R&D Department Manufacturing Department

Sales Department

Goal New developments,

quality

Efficient production Customer satisfaction

Time horizon Long Short Short

Interpersonal orientation Mostly task Task Social

Formality of structure Low High High

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Adapting to a Changing Environment

Environmental Uncertainty and Organizational Integrators

Industry Plastics Foods Container

Environmental uncertainty

High Moderate Low

Departmental differentiation

High Moderate Low

Percent management in integrating roles

22% 17% 0%

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Adapting to a Changing Environment

สวนอยชะ

Environmental Uncertainty and Organization Responses

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Adapting to a Changing Environment

สวนมะปราง

Environmental Uncertainty and Organization Responses

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Adapting to a Changing Environment

Stable-Unstable

Simple-Complex

Homogeneous- Heterogeneous

Amount of Resources

Environment Organization

The need for information about the environment

The need for resources from the environment

How does environment influence an organization?

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Dependence on External Resources

The environment is the source of scarce and valued resources essential to organizational survive.

Resource Dependence Perspective

Establishing

Formal Relationship Influencing Key

Section

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Dependence on External Resources

Organizing Strategies for Controlling the External Environment 6.7

Establishing Formal Relationship

1. Acquire an ownership stake

2. From joint ventures and partnerships

3.Lock in key players

4. Recruit executives

5. Use advertising and public relations

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Dependence on External Resources

Organizing Strategies for Controlling the External Environment 6.7

Influencing Key Sectors

1. Change where you do business (your domain)

2. Use political activity, regulation

3. Join in trade associations

4. Avoid illegitimate activity

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Dependence on External Resources

Organization-Environment Integrative Framework

Environmental domain

(ten sector)

High complexity

Scarcity of valued resource

High rate of change

Environment

•Many department and boundary role •More differentiation and integration for internal coordination

Organic structure and systems with low

formulization to enable a high-speed response

Establishment of favorable relationship

Control of environment domain

Organization

High Uncertainty

Resource Dependency