Академический Документы
Профессиональный Документы
Культура Документы
Environment
and Culture
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Describe the general and specific environments that could affect an
organisation;
2. Explain the importance of constant monitoring of environmental
forces; and
3. Identify the internal organisational environmental factors that
influence an organisation.
X INTRODUCTION
After understanding the meaning of management and several issues related to it,
the next issue that must be considered in management is the organisational
environment. Why is organisational environment very important in
management?
Organisational environment can be divided into two categories, which are the
organisationÊs external environment and internal environment.
This external environment can be seen from two aspects ă simple environment
and complex environment. A simple environment is an external environment
that only influences some of the factors involved while in the complex
environment there are lots of external environmental factors that are involved in
a situation.
Therefore, the four factors stated above are the factors that outline the general
environment of an organisation, which are the economy, political, technology
and social.
The price levels in Malaysia are controlled and any sudden price increases
is monitored by the government. The government and businesspeople
work together to resolve these issues.
The governmentÊs fiscal policy also affects the economy. The governmentÊs
control on credit facilities affects businesses. For example, increase in
interest rates to overcome the economic problems that hit Malaysia caused
a lot of industries to decline, such as the car and construction industries.
SELF-CHECK 2.1
Unlike political factors that affect all industries from the external
environment, an industryÊs regulations are legislations and rules that
monitor the business practices and procedures of an industry, business or
profession.
SELF-CHECK 2.2
In your opinion, how far did the tragedy of 11 September 2001 affect the
tourism industry around the world?
(a) Consumers
Consumers are the determinants of a successful business. Without
consumers, businesses would not exist. Producing quality products and
providing satisfaction to consumers are the keys to success for a business.
Businesses are set up at locations that have lots of consumers such as in
cities, suburbs and housing areas. Overseas branches are also established to
manage the demands of consumers from a particular country.
SELF-CHECK 2.3
As a consumer, do you know your rights as a determinant of a business?
TOPIC 2 ORGANISATIONAL ENVIRONMENT AND CULTURE W 29
(b) Competitors
Competitors are other companies in the same industry selling the products
or services of the same types to consumers. For example, companies such as
Hush Puppies and Larrie compete to acquire customers in the shoe market.
It is the same for Digi, Maxis and Celcom, which compete in the
telecommunications industry. Normally, the difference between the success
and failure of a business comes from the efforts of the company in
performing its duties to satisfy the demands and requirements of its
consumers compared to its competitors.
(c) Suppliers
A supplier is a company that supplies material sources, manpower, finance
and information. Construction companies are highly dependent on steel
companies to obtain the main raw materials, which include struts and steel
for construction. Restaurants are fully dependent on fishermen to obtain
fresh seafood supplies.
The main factor that influences the relationship between a company and its
supplier is how interdependent they are with each other. Supplier
dependability is where a company depends on a supplier based on the
importance of its products to the company and the difficulty to obtain other
sources. BuyersÊ dependability is where the supplier depends on a buyer
due to the importance of that buyer to the supplier and the difficulty to sell
its products to other buyers.
ACTIVITY 2.1
EXERCISE 2.1
Essay Question
SELF-CHECK 2.4
Organisational culture is the values, beliefs and behaviour shared together by all
members of an organisation. An organisational culture that has been formed is
difficult to diminish or replace with a new culture. It is even stronger than
regulations and procedures. Regulations and procedures only force those in an
organisation to observe and abide by them. If employees are given an
opportunity, they will try to avoid or go against them. However, once it becomes
the culture, specifically if it has become the organisational culture, employees
will willingly accept and adopt it without being forced. For example, in the
Malay culture, when entering a house, it is courteous to greet and to take off your
shoes. This practice had been the culture for generations. If someone tries to
change it, it will definitely be met with resistance.
It is not impossible that in the efforts to lead and mould the organisational
culture from the philosophies that have been formed in the organisation,
the founder might have retired or left the said organisation. Therefore, what
will be the fate of the values, behaviours and beliefs that had been formed
by the founder? It will definitely be from the story and heroes of the
organisation.
The organisation story comprises the subjects that are told by members of
the organisation for change sensitivities to emphasise a continuous culture
or straightforwardness in assumptions, decisions and actions.
Meanwhile, the vision of a company is the purpose and reason for its
existence. In an organisational culture that has clear and unambiguous
vision, the purpose and strategic direction of the organisation is clear to
everyone in the organisation. If a manager is not sure of its business
environment, the vision will help to drive its discussions, decisions and
conduct in the company.
Continuity emphasises that companies that are active will define and
educate on their values, beliefs and organisational behaviour. Organisation
cultures that are continuous are also regarded as strong because its core
beliefs are widespread and held strongly.
EXERCISE 2.2
A. buyer dependability
B. supplier dependability
C. relationship behaviour
D. industry legislation
A. organisationÊs founder
B. competitorÊs organisational strategies
C. management
D. employees
A. Values
B. Beliefs
C. Strategies
D. Attitude
A. consumers
B. employees
C. society
D. government
A. buyer dependability
B. supplier dependability
C. industry regulations
D. relationship behaviour
TOPIC 2 ORGANISATIONAL ENVIRONMENT AND CULTURE W 35