Organization Environment Interface
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ORGANIZATION- ENVIRONMENT INTERFACE A presentation highlighting the effect of the business environment in an organization beyond its economic factors.
description
A presentation on how the organization is affected by its environment and how the organization works in the changing environment.
Transcript of Organization Environment Interface
ORGANIZATION-ENVIRONMENT INTERFACE
A presentation highlighting the effect of the business environment in an organization beyond its economic factors.
Organizational Environment
Operating Environment or Task
Environment (EXTERNAL
ENVIRONMENT).
All organizations depend upon the
task environment.
These are the elements beyond the general
environment which have a specific and direct bearing
on the organization.
Task EnvironmentDirec
t actio
n
Indirect
action
Elements of Task
environment
Elements of an Organizational Environment
External stakeholdersCustomer
s
Special groups
Media
Competitors
Employees
Shareholders & Board of Directors
Internal Stakehold
ers
ENVIRONMENTAL IMPACT ON ORGANIZATIONS
Burns and Stalker
Lawrence and Lorsch
Duncan model
TH
EO
RI
ES
Burns and Stalker
Mechanistic Organization:works in a relatively simple environmentTasks are segmentedVertical CommunicationPosition based authorityHierarchical & impersonal controlsAutocratic , programmed , computational
decision makingHigh FormalizationHigh centralization
Burns and Stalker
• Organic Organization:Relatively dynamic , complex & uncertain
nature of environmentTasks loosely definedLateral communicationExpertise based authorityReciprocal control mechanismParticipative ,non programmed , judgmental
decision makingLow formalizationLow centralization
Lawrence and Lorsch :Differentiation-Integration Theory
Differentiation-The degree of horizontal complexity, as well as the diversity of attitudes, perceptions and interpersonal orientations among the members.
Integration-The degree to and manner in which different organizational units and departments collaborate to achieve an unity of sorts.
DUNCAN: A MODEL FOR “RIGHT” ORGANIZATIONAL STRUCTURE.
The framework was based on a conceptualization of environmental uncertainty of two dimensions-
Environmental Change
Environmental Complexity
STATEGIES FOR MANAGING ENVIRONMENTThe strategies used by the
organization to reduce uncertainty are:
• Domain Choice
• Recruitment
• Vertical Integration
• Buffering
Strategies (continued)…
• Smoothening
• Advertising
• Contracting
• Mergers/Acquisitions/Strategic Alliances
• Lobbying
Conclusion
An illustrated case study of
McDonalds
PRESENTED BYANIRBAN PAULIPSHITA GHOSHJAYATI BANERJEEMOHUL MUKHERJEE
