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The external environment refers to factors outside an organization that influence its performance. It includes economic, demographic, technological, sociocultural, political/legal, and global factors. Understanding the external environment is important for managers as it poses constraints they must overcome to be successful. Changes in the external environment affect jobs and employment, environmental uncertainty faced by managers, and their relationships with stakeholders. Organizational culture comprises the shared values and ways of doing things within an organization. It is shaped by the founder's biases and early employee experiences, and is learned through stories, rituals, symbols, and language used within the organization. Organizational culture influences what managers and employees do.
Исходное описание:
Fundamentals of Management: Essential Concepts and Applications (8/E)
by: Robbins, Decenzo, & Coulter
The external environment refers to factors outside an organization that influence its performance. It includes economic, demographic, technological, sociocultural, political/legal, and global factors. Understanding the external environment is important for managers as it poses constraints they must overcome to be successful. Changes in the external environment affect jobs and employment, environmental uncertainty faced by managers, and their relationships with stakeholders. Organizational culture comprises the shared values and ways of doing things within an organization. It is shaped by the founder's biases and early employee experiences, and is learned through stories, rituals, symbols, and language used within the organization. Organizational culture influences what managers and employees do.
The external environment refers to factors outside an organization that influence its performance. It includes economic, demographic, technological, sociocultural, political/legal, and global factors. Understanding the external environment is important for managers as it poses constraints they must overcome to be successful. Changes in the external environment affect jobs and employment, environmental uncertainty faced by managers, and their relationships with stakeholders. Organizational culture comprises the shared values and ways of doing things within an organization. It is shaped by the founder's biases and early employee experiences, and is learned through stories, rituals, symbols, and language used within the organization. Organizational culture influences what managers and employees do.
WHAT IS EXTERNAL ENVIRONMENT? • External environment – Refers to factors, forces, situations, and events outside the organization that affect its performance. EXTERNAL ENVIRONMENT • Economic – Interest rates, inflation, changes in disposable income, stock market fluctuations and business cycle stages. • Demographic – Trends in population characteristics such as age, race, gender, education level, geographic location, income and family composition. • Technological – Concerns with specific or industrial innovations. EXTERNAL ENVIRONMENT (cont…) • Sociocultural – Societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes and patterns of behavior. • Political/Legal – Looks like federal, state and local laws as well as laws of other countries and global laws. • Global – Associated with globalization and world economy. WHY EXTERNAL ENVIRONMENT IS IMPORTANT? • Because it poses constraints and challenges to managers that they need to overcome in order to be successful. HOW DOES EXTERNAL ENVIRONMENTS AFFECT MANAGERS? 1. Jobs and employment 2. Assessing environmental uncertainty 3. Managing stakeholders relationships JOBS AND EMPLOYMENT • One of the most powerful constraints managers face is the impact of changes due to certain conditions, example, world recession. • The challenge: balance work demands and having enough people with the right skills to do the organization’s work. • Affect the types of jobs that are available, they also affect how those jobs are created and managed. • Affect the way you plan, organize, lead and control. ENVIRONMENTAL UNCERTAINTY • Refers to the degree of change and complexity in an organization’s environment. • 2 dimensions of uncertainty – Degree of unpredictable change – Degree of environmental complexity • Look at the numbers of components in an organization’s environment and the extent of the knowledge that the organization has about the components. MANAGING STAKEHOLDER RELATIONSHIPS • Stakeholders – Any constituencies in an organization’s environment that are affected by that organization’s decisions and actions. WHY MANAGERS SHOULD MANAGE RELATIONSHIP WITH STAKEHOLDERS? • Lead to desirable organizational outcomes – Improved predictability of environmental changes, more successful innovations, greater degree of trust with stakeholders, and greater flexibility to reduce the impact of change. • It’s the right thing to do – Depends on external groups for inputs (resources) and outlet for outputs (goods and services) WHAT IS ORGANIZATIONAL CULTURE? • Organizational culture – The shared values, principles, traditions, and ways of doing things that influence the way organizational members act. • Definition of culture implies three (3) things: – Perception: they way they experienced it in the organization – Descriptive: how they describe it – Everyone say the same similar terms WHERE DOES ORGANIZATION CULTURE COMES FROM? 1. The founder’s biases and assumptions 2. What the first employees learned from their first experiences. HOW DOES EMPLOYEE LEARN CULTURE? • Stories – Narrative of significant events or people such as Nike’s CEO telling employees the history of the company and its heritage. • Rituals – Repetitive sequences of activities that express and reinforce the importance of values and goals of the organization. For example, “Passing of the Pillars” from the Boston Scientific. HOW DOES EMPLOYEE LEARN CULTURE? (cont…) • Material symbols – Material symbols or artifacts in creating an organization’s personality such as layout of organization’s facilities, how employees dress, type of automobiles provided to top executives, availability of corporate aircraft, size of the offices, elegance of office, executive perks, employee fitness centers, on site dining facilities, or reserve parking spaces. HOW DOES EMPLOYEE LEARN CULTURE? (cont…) • Language – A way to identify and unite members of a culture. For example, at Cranium a Seattle board game company use the word “Chiff” to remind everyone to be innovative. “Chiff” stands for clever, high quality, innovative, friendly and fun. HOW DOES ORGANIZATIONAL CULTURE AFFECT MANAGERS? • Through its effect on what employees do and how they behave. • Through its effect on what managers do as they plan, organize, lead and control.