Chapter 2 - OB2

What are the environmental sectors?

• Industry

• Raw materials

• Human resources

• Financial resources

• Market

• Technology

• Economic conditions

• Government

• Sociocultural

• International

What are the dimensions of environmental uncertainty?

• Stable to unstable

• Simple to complex

What does stable to unstable refer to?

The rate of change; predictability of change

What does simple to complex refer to?

Number of different factors/forces

What are the types of environmental uncertainty?

• Simple + Stable = Low uncertainty

• Complex + Stable = Low-moderate uncertainty

• Simple + Unstable = High-moderate uncertainty

• Complex + Unstable = High uncertainty

Mechanistic

• Tasks are broken down into specialized parts

• Tasks are rigidly defined

• There is a strict hierarchy of authority and control, and there are many rules

• Knowledge and control of tasks are centralized at the top of the organization

• Communication is vertical

Organic

• Employees contribute to the common tasks of the department

• Tasks are adjusted and redefined through employee teamwork

• There is less hierarchy of authority and control, and there are few rules

• Knowledge and control of tasks are located anywhere in the organization

• Communication is horizontal

How do you address a simple environment?

Mechanistic design

How do you address a complex environment?

Organic design

How do you address a stable environment

• Few departments

• Less integrated roles

• Slower response times

How do you address an unstable environment

• More departments that are boundary spanning

• More integrated roles

• More planning and quick response times

Resource Dependence

When an organization depends on their environment

How do you address resource depencence

• Control resources

• Control the environment