02_ENV

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Dr. Serdar KALE IZMIR INSTITUTE OF TECHNOLOGY ENGINEERING MANAGEMENT PROGRAM ORGANIZATION THEORY AND MANAGEMET 02 1 The Environment of Organization International and Global Environment The general Environment Cultural sector Historical background, ideologies values and norms of society Social sector Class structure, mobility patterns, life styles and demographics Legal sector Constitutional considerations, nature of legal system, specific laws Political sector General political climate Economic sector General economic framework, private vs. public ownership, banking system Technological sector The level of scientific and technological advancement in society Physical sector The nature, quantity and quality of natural resources, climate

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ORGANIZATION THEORY AND MANAGEMET

Transcript of 02_ENV

Page 1: 02_ENV

Dr. Serdar KALE

IZMIR INSTITUTE OF TECHNOLOGY ENGINEERING MANAGEMENT PROGRAM

ORGANIZATION THEORY AND MANAGEMET 02

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The Environment of Organization

International and Global Environment

The general Environment

Cultural sector Historical background, ideologies values and norms of society

Social sector Class structure, mobility patterns, life styles and demographics

Legal sector Constitutional considerations, nature of legal system, specific laws

Political sector General political climate

Economic sector General economic framework, private vs. public ownership, banking system

Technological sector The level of scientific and technological advancement in society

Physical sector The nature, quantity and quality of natural resources, climate

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Dr. Serdar KALE

IZMIR INSTITUTE OF TECHNOLOGY ENGINEERING MANAGEMENT PROGRAM

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Interorganizational Network (Task Environment)

Unions Suppliers Special interest groups Competitors Partners Customers Regulatory agencies

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Dr. Serdar KALE

IZMIR INSTITUTE OF TECHNOLOGY ENGINEERING MANAGEMENT PROGRAM

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Theories of organization – environment relations Contingency Theory (Burns and Stalker, 1961; Lawrence & Lorsch, 1967)

Mechanistic vs. Organic Organizations Differentiation vs. Integration

Resource Dependence Theory (Pfeffer & Salacik, 1978)

Power and dependence relationships Inputs (capital, raw material, labor, customers, knowledge and equipment) Criticality Scarcity Buffer Boundary spanning

Population Ecology (Hannan and Freeman, 1974)

Darwin’s survival of the fittest principle Generalist vs. Specialist Variation – the birth of an organization Selection – environment selects organizations on basis of fitness Retention – survival of an organization

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Dr. Serdar KALE

IZMIR INSTITUTE OF TECHNOLOGY ENGINEERING MANAGEMENT PROGRAM

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Institutional Theory (Selznick, 1957; Meyer and Rowan, 1977; DiMaggio and Powell, 1983)

Institutionalization – ‘the process by which actions are repeated and given similar

by self and others ‘ Rationalized myths Isomorphism Coercive institutional pressures - Legal Political Influences Normative institutional pressures - Cultural Influences Mimetic institutional pressures - Social Influences

Social Legitimacy

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Dr. Serdar KALE

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ECONOMY D

ECONOMY C

ECONOMY F

ECONOMY B

ECONOMY A

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Dr. Serdar KALE

IZMIR INSTITUTE OF TECHNOLOGY ENGINEERING MANAGEMENT PROGRAM

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ECONOMY A

GENERAL ENVIRONMENT

NETWORK

ORG

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Dr. Serdar KALE

IZMIR INSTITUTE OF TECHNOLOGY ENGINEERING MANAGEMENT PROGRAM

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ORG

NETWORK

CULTURAL

FACTORS POLITICAL FACTORS

SOCIAL FACTORS

ECONOMIC FACTORS

LEGAL

FACTORS

TECHNOLOGICAL FACTORS

PHYSICAL FACTORS

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A

B

E

ORG

D

F

C

INTERORGANIZATIONAL NETWORK

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Dr. Serdar KALE

IZMIR INSTITUTE OF TECHNOLOGY ENGINEERING MANAGEMENT PROGRAM

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OUTPUTS

TRANSFORMATION PROCESS

INPUTS

FEEDBACK / CONTROL

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Dr. Serdar KALE

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KEY CONCEPTS OF SYSTEMS THEORY

Sub systems or components Holism, synergism, organicism and gestalt Open systems vs. closed systems Input - Transformation - Output Model System boundaries Steady state, dynamic equilibrium and homeostasis Feedback Hierarchy Internal elaboration Multiple goal seeking Equifinality of open systems