Management Lecture 03 Environment by AbdulAleem5


									Principles of Management

  Organizational Environment
   Organizational Environment
• Environment consists of all forces with the
  potential to influence the organization and its
• Set of forces and conditions both inside and
  outside the organization’s boundaries that have
  the potential to affect the way the organization
• 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
• 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

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