Untitled Flashcards Set

Task Environment

  • Direct impact on organization's goals

  • Includes industry, raw materials, market sectors, human resources, international sectors

General Environment

  • Indirect influence on daily operations

  • Includes government, sociocultural, technology, financial resources, economy

International Sector

  • Directly affects organizations

  • Domestic sectors impacted by international events

Environmental Uncertainty

  • Day-to-day basis

  • Decision makers lack sufficient information

  • Difficulty predicting external changes

Simple-Complex Dimension

  • Environmental complexity and heterogeneity

  • Number and dissimilarity of external elements

  • Greater complexity with more diverse influences

Stable-Unstable Dimension

  • Stability and predictability of environmental elements

  • Dynamic vs. static changes in the environment

Adapting to Environmental Uncertainty

  • Positions and Departments: Increased internal complexity with external uncertainty

  • Buffering and Boundary Spanning: Buffer departments absorb uncertainty, boundary roles link organization with external environment

  • Differentiation and Integration: Differences and coordination among departments

Organic vs. Mechanistic Structures

  • Mechanistic: Stable environment, formalized, centralized, clear hierarchy

  • Organic: Rapidly changing environment, adaptive, decentralized, less formal

Resource Dependence Theory

  • Organizations rely on external resources

  • Strive for control to minimize dependence

  • Vulnerable if resources controlled by others

Establishing Interorganization Linkages

  • Ownership: Acquisitions, mergers for control

  • Formal Strategic Alliances: Contracts, joint ventures for collaboration

  • Cooptation, Interlocking Directorates: Leaders from external sectors integrated

  • Executive Recruitment: Exchange of executives for favorable linkages

  • Advertising and Public Relations: Influencing consumer preferences

Controlling the Environmental Domain

  • Change of Domain: Altering business relationships and focus

  • Political Activity, Regulation: Influencing government legislation

  • Trade Associations: Collaborative efforts with similar organizations

  • Illegitimate Activities: Unlawful or unethical actions under pressure