External Factors Affecting Organizational Structure
EXTERNAL FACTORS:
Environment
The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological, and natural environment conditions. Environments are often described as either stable or dynamic. ➢ Stable environment • customers' desires are well understood • remains consistent for a relatively long time • Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. • mechanistic structures to be advantageous • This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments ➢ Dynamic environment • Customers' desires are continuously changing—the opposite of a stable environment • This condition is often thought of as turbulent • the technology that a company uses while in this environment may need to be continuously improved and updated • An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. • organic structure provides the greatest benefits • This structure allows the organization to respond to environment change more proactively.
Organizations are now increasingly designed to be more organic now days. The HR Organizational Structure has to fit to new challenges born in the external environment. All the important and influencing people speak about the changes in the business world, as the current recession seems to be one of the worst recessions ever. The way the business was done will be discontinued and new business ethics and new business rules will be born. In Recession for example
Environment
The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological, and natural environment conditions. Environments are often described as either stable or dynamic. ➢ Stable environment • customers' desires are well understood • remains consistent for a relatively long time • Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. • mechanistic structures to be advantageous • This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments ➢ Dynamic environment • Customers' desires are continuously changing—the opposite of a stable environment • This condition is often thought of as turbulent • the technology that a company uses while in this environment may need to be continuously improved and updated • An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. • organic structure provides the greatest benefits • This structure allows the organization to respond to environment change more proactively.
Organizations are now increasingly designed to be more organic now days. The HR Organizational Structure has to fit to new challenges born in the external environment. All the important and influencing people speak about the changes in the business world, as the current recession seems to be one of the worst recessions ever. The way the business was done will be discontinued and new business ethics and new business rules will be born. In Recession for example