Chapter 2 The Management Environment

What is the organizational environment?

The organizational environment consists of factors, forces, situations, and events outside the organization that affect its performance.

Why is the external environment important for managers?

It influences decision-making, organizational performance, and helps in managing stakeholder relationships.

What are demographics in the context of organizational management?

Demographics refer to the characteristics of a population, such as age, income, gender, race, education level, etc., influencing marketing and HR decisions.

What does the technological environment encompass?

It concerns scientific or industrial innovations and includes the making and use of tools, machines, and techniques impacting management practices.

What are the four components of the external environment?

Political/Legal, Sociocultural, Technological, and Economic.

What is organizational culture?

Organizational culture is defined by shared values, principles, traditions, and ways of doing things within an organization.

What role does technology play in modern organizations?

Technology impacts how organizations manage their workforce, hire employees, comply with regulations, and handle data.

How is globalization characterized in organizational management?

Globalization involves the exchange of goods and services across countries, utilizing managerial talent and financial resources internationally.

What are types of Corporate Social Responsibility (CSR)?

Environmental responsibility, human rights responsibility, philanthropic responsibility, and economic responsibility.

What is the significance of good stakeholder relationships?

They can affect organizational performance and involve ethical management by communicating truthfully, competing fairly, and causing no harm.