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Principles of Management Organizational Environment Organizational Environment • Environment consists of all forces with the potential to influence the organization and its performance. • Set of forces and conditions both inside and outside the organization’s boundaries that have the potential to affect the way the organization operates. • The environment can help or hurt management’s efforts to attain the goals. • Consists of Opportunities and Threats. Organizational Environment • Internal Environment – Organizational Culture, Owners & Shareholders, Board of Directors, and Employees • External Environment – Partners, Customers, Competitors, Suppliers, Labour Supply, and Regulators – Forces – Politicolegal, Economic, Technological, Sociocultural, and International • General Environment • Task Environment How Environment Influences the Organization? • Environmental Uncertainty – Environmental Change – Environmental Complexity • Environmental Interaction – Environmental Munificence – Resource Dependence How Managers Respond? • Boundary Spanning • Adaptation to the Environment – Organization Structure – Buffering – Forecasting – Smoothing and Rationing • Influence on the Environment – Political and Legal Activities – Joint Ventures – Advertising and Public Relations – Domain Shifts
"Management Lecture 03 Environment"