Preview

Environmental uncertainty in organization.

Good Essays
Open Document
Open Document
1914 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Environmental uncertainty in organization.
Define environmental uncertainty and resource dependence. Describe the major ways in which managers can deal with high environmental uncertainty and resource dependence.

A good answer would base the analysis of environmental uncertainty on Duncan's approach, which characterises uncertainty in the stable-unstable and simple-complex dimensions. It should identify buffering, boundary spanning, organisational differentiation and integration as responses to growing uncertainties. As to management of resource dependence, the student should refer to inter-organisational linkages (ownership, strategic alliances, interlocking directorates, executive recruitment) and boundary spanning.

The modern organizations do not live in the vacuum. They are open systems, which must interact with the environment. It must continuously change and adapt to the environment.

Organizational environment is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization.

The environment of an organization can also be understood by analysing its domain within external sectors. An organization's domain is the chosen environmental field of action. Domain defines the organization's niche and defines those external sectors with which the organization will interact to accomplish its goals.

The environment comprises several sectors or subdivisions of the external environment that contain similar elements. Ten sectors can be analysed for each organization: industry, raw materials, human resources, financial resources, market, technology, economic conditions, government, socialcultural an d international.

The environment influences the organization by two essential ways, first, the need for information about the environment; second, the need for resources from the environment.

The environmental condition of complexity and change create a greater need to gather information and to respond based on that information. The

You May Also Find These Documents Helpful

  • Good Essays

    It is very critical for organization to understand the importance of external environment, which includes remote, operating and industrial environments before developing its future objective. Each environment bases on different factors, therefore the analysis of external environment will help the company seeks for new opportunity in many areas as well as discovering challenges that might have direct impact to the organization in the future. The remote environment consists of the study of the economic trend such as the level of disposable income, inflation rate and prime rate, the study of social factors such as life style of consumers. The political factor also plays an important role in external environment. Political factor focuses on the legal and regulation that has direct impact on the organization. Besides remote environment, the operating environment also provides important information that will assist the company 's development plan in the future. The operating environment concentrates on the new and existing competitors. Understanding the level of competitiveness in the market will help the company develop its future tactics to compete with others in the industry. Besides studying the competitor, the operating environment also concentrates on the customer profile. The study of buyer behavior will assist company in developing new product.…

    • 838 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    2.Describe in detail the environmental and organizational pressures that exist in the organization and how they have evolved over time.…

    • 469 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Amp 425 Module 1 Paper

    • 745 Words
    • 3 Pages

    The external environment faced by the firm and its business units affects the strategy of the firm, the value of the strategy, and thus the firm’s performance. Environmental analysis is considered to be an active input which helps in identifying different threats and opportunities a firm is likely to face which will help in formulating different strategies for competing in the competitive market. The factors to be considered should include: social, economic, technological, completive, and regulatory. (Page 61)…

    • 745 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Haiii

    • 717 Words
    • 3 Pages

    | Lecture topics * Environmental Domains * Environmental Uncertainty: stability and complexity * Designing Organizations for Managing Environmental…

    • 717 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Hsm 220 Week 2 Checkpoint

    • 382 Words
    • 2 Pages

    Summarize, in 200 to 300 words, the four external environmental factors and six internal environmental factors that help organizations achieve optimal function.…

    • 382 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    BUSS3500

    • 1002 Words
    • 4 Pages

    Environment: is what gives organizations means of survival, it creates opportunities and it presents threats.…

    • 1002 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Hsm Week 2

    • 438 Words
    • 2 Pages

    Summarize, in 200 to 300 words, the four external environmental factors and six internal environmental factors that help organizations achieve optimal function.…

    • 438 Words
    • 2 Pages
    Good Essays
  • Better Essays

    2. Describe in detail the environmental and organizational pressures that exist in the organization and how they have evolved over time.…

    • 1150 Words
    • 1 Page
    Better Essays
  • Better Essays

    Environmental Scan Paper

    • 1134 Words
    • 5 Pages

    Environmental scanning of the internal organizational environment focuses on company culture, employee-employee, manager-employee, and manager-manager, manager-shareholder interactions, in addition to organizational structure, natural resources’ access and brand awareness, among others (Schneider, 1995, p.70). Environmental scanning of the external organizational environment focuses on the analysis of the industry/immediate environment, national, and macro-environments. Analysis of the industry environment appraises the competitive stance of an organization and its key rivals, although, the national environment assesses the influence of the national framework in enabling an organization achieve competitive advantage globally. The macro-environment relates to identifying the social, legal, technological, economic, and political influences on an organization’s operations (Schneider, 1995, p.73).…

    • 1134 Words
    • 5 Pages
    Better Essays
  • Better Essays

    There is an old real-estate joke about the three most important factors in the business of realty, the punch line being “Location Location Location”. Though made in jest this idea is not far from the truth since the area in which any business type organization is established will typically play a big part in its overall success. On a much bigger scale the success of any business is also greatly dependant on the state of the global environment as well. Trends in culture and practices from other organizations will all ultimately have a huge impact on the way a business functions. It is the focus of this paper to explore the relationship between any business type organizations and the environments that influence its success both short term and long term.…

    • 2792 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    Environmental analysis is important for an organization because it is a measure to prevent surprises from the external environment that may affect the organization positively or negatively. External environment analysis “attempts to identify, aggregate, and interpret environmental issues as well…

    • 900 Words
    • 3 Pages
    Powerful Essays
  • Better Essays

    It is important to understand about the environments that organizations are facing? Yes, it is important to have sound understanding about the environments companies are facing as the external environment has an overwhelming impact on management uncertainly. As in this report writing, I will state important factors, elements and create why the study of the environment is important to us in this fast and changing world we ever live in.…

    • 1011 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    The four external environments are: economic factors, sociological factors, technological factors, and political/professional factors. The six internal environments are: organizational purpose mission and philosophy, organizational planning, organizational operations, human resources, technological resources, and financial resources.…

    • 1097 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    The external environment consists of the three subcategories: remote, industry, and operating environments. The remote environment comprises factors that affect the firm’s operations such as economic, social, political, technological, and ecological. Theez Doggs operate in the competitive restaurant industry.…

    • 955 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    management

    • 1255 Words
    • 7 Pages

    This report will explore more about organizational environment including external environment and internal environment. Mission statement is one of the elements that made up the internal environment.Mission statement should also consider some concepts in order to be effective mission statement. Thaitanic is a Thailand concept restaurant and was established in 2014, which is located in one of Jakarta’s most crowded spot, PIK( Pantai Indah Kapuk). The target market for Thaitanic is people who has never tasted Thailand’s food before and have the curiosity for tasting Thai food, also we are looking for people who are already familiar and in love with Thai cuisine.…

    • 1255 Words
    • 7 Pages
    Powerful Essays