The External Environment

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The External Environment
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Defining the External Environment

• External Environment
• Those factors and forces outside the organization
  that affect the organizations performance.
• Components of the External Environment
• Specific environment external forces that have a
  direct and immediate impact on the organization.
• General environment broad economic,
  socio-cultural, political/legal, demographic,
  technological, and global conditions that may
  affect the organization.

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Parameters of Managerial Discretion
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Logistic Function Organisation
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Implications of the Systems Approach

• Coordination of the organizations parts is
  essential for proper functioning of the entire
  organization.
• Decisions and actions taken in one area of the
  organization will have an effect in other areas
  of the organization.
• Organizations are not self-contained and,
  therefore, must adapt to changes in their
  external environment.

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The Contingency Approach

• Contingency Approach Defined
• Also sometimes called the situational approach.
• There is no one universally applicable set of
  management principles (rules) by which to manage
  organizations.
• Organizations are individually different, face
  different situations (contingency variables), and
  require different ways of managing.

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Popular Contingency Variables

• Organization size
• As size increases, so do the problems of
  coordination.
• Routineness of task technology
• Routine technologies require organizational
  structures, leadership styles, and control
  systems that differ from those required by
  customized or nonroutine technologies.
• Environmental uncertainty
• What works best in a stable and predictable
  environment may be totally inappropriate in a
  rapidly changing and unpredictable environment.
• Individual differences
• Individuals differ in terms of their desire for
  growth, autonomy, tolerance of ambiguity, and
  expectations.

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Current Trends and Issues

• Globalization
• Ethics
• Workforce Diversity
• Entrepreneurship
• E-business
• Knowledge Management
• Learning Organizations
• Quality Management

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How Organizations Go Global
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Current Trends and Issues (contd)

• Globalization
• Management in international organizations
• Political and cultural challenges of operating in
  a global market
• Working with people from different cultures
• Coping with anticapitalist backlash
• Movement of jobs to countries with low-cost labor
• Ethics
• Increased emphasis on ethics education in college
  curriculums
• Increased creation and use of codes of ethics by
  businesses

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Categories of E-Business Involvement
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Distribution and Technology Organisation
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Dimensions of Organizational Culture
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Spirituality and Organizational Culture

• Workplace Spirituality
• The recognition that people have an inner life
  that nourishes and is nourished by meaningful
  work that takes place in the context of
  community.
• Characteristics of a Spiritual Organization
• Strong sense of purpose
• Focus on individual development
• Trust and openness
• Employee empowerment
• Toleration of employees expression

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Benefits of Spirituality

• Improved employee productivity
• Reduction of employee turnover
• Stronger organizational performance
• Increased creativity
• Increased employee satisfaction
• Increased team performance
• Increased organizational performance