1、The Changing Environment of Organizations and ManagersvA certain amount of stability of the environment is essentialvAdapting to change helps managers meet organizational goalsvDealing successfully with change can increase efficiency and effectivenessvEnvironmental factors play a major role in deter
2、mining an organizations success or failurevGeneral Environment:composed of the nonspecific elements of the organizations surroundings that might affect the activities of the organization.The effects of these dimensions on the organization are broad and gradual.vTask environment:Consist of specific e
3、lements of the organizations surroundings that are very likely to influence the organization(specific to organization,effects are likely to be direct)vNew EconomyNational borders no longer define an organizations operating boundariesTechnology opens up organizations and makes information more access
4、ibleJob opportunities are for knowledge workersPopulation is characterized by cultural diversityBusiness accepts it social responsibilitiesEconomy is driven by small entrepreneurial firmsCustomer needs drive businessvThree Waves Changed the WorldFirstly,Agriculture.Until the late nineteenth century,
5、all economies were agrarian.Secondly,Industrialization.From the late 1800s until 1960s,most developed countries moved from agrarian societies to industrial societies.Third,Information.Information technology is transforming society from its manufacturing focus to one of serviceThe Organization and It
6、s Environment Environment is of critical importance to the success and failure of any organization.Managers need to have a keen understanding of their environmenthow it affects them and how they can affect itvExternal environment:the forces and institutions outside the organization the potentially c
7、an affect the organizations performance.It composes General environment and Task environmentvGeneral Environment:Everything outside an organizations boundaries.The overall context of general environment are Economic,Legal,Political,Socio-culture,international,and technical forces.Broad economic,soci
8、o-cultural,political-legal,demographic,technological,and global conditions that may affect the organization.OwnersEmployeesPhysical EnvironmentBoard of DirectorsCultureFigure 3-1 Organizations General Environment DimensionsDimensions of GE Affecting On OrganizationEconomic Dimension:the overall heal
9、th and vitality of the economic system in which the organization operates;Technological Dimension:methods that available for converting resources into products or services;Sociocultural Dimension:includes the customs,mores,values,and demographic characteristics of the society in which the organizati
10、on functionsPoliticallegal Dimension:the extent of government regulation of business and the general relationship between business and governmentInternational Dimension:the extent to which the organization is affected by business in other countriese.g.“The general environment of McDonald”on pp.34vTa
11、sk Environment(specific environment):composed of specific groups and organizations that affect the firm,external forces that have a direct and immediate impact on the organization.vDimensions of Task EnvironmentCompetitors:seeking the same resources as the organizationCustomers:acquire an organizati
12、ons products or resourcesSuppliers:provide resources for the org.Regulators:control,legislate,or influence the organizations policies or practice,and regulatory agencies or interest groups,strategic partners who are a joint venture or partnership with the organization.McDoonaldsMcDonadsRegulators-Fo
13、od and Drug administration-Securities and exchange commission-EnvironmentalProtection agencyStrategic Partners-Wal-Mart-Disney-Foreign partnersSuppliers-Coca-cola-Wholesale food processors-Packaging manufacturersCustomers-Individual consumers-Institutional customersCompetitors-Burger King-Decos-Subw
14、ay-Dairy QueenThe task environment of McDonald Internal EnvironmentTask EnvironmentInternal EnvironmentvThe internal environment are conditions and Stakeholders forces present and at work within an organization.vOrganizational stakeholders:that are any constituencies in the organizations external en
15、vironment that are affected by the organizations decisions and actions,and they are people an organizations that are directly affected by the behaviors of an organization that have a stake in its performance.vStakeholders Conditions and ForcesOwners,who are persons with legal property right to busin
16、ess;Board of directors,elected by the stockholders and are charged with overseeing the general management of the firm to ensure that it is run in a way that best serves the stockholders interestEmployees,who work for the firm and have a vested interest in its continued operation and existencePhysica
17、l work environment:the actual physical environment of the organization and the work that people do.Why Should We Managing Stakeholder Relationship?vManaging it can lead to improved organizational performance;vIts the“right”thing to do given the interdependence of the organization and its external st
18、akeholdersvIt can identify the organizations external stakeholders,vTo determine the particular interest and concerns of the external stakeholdersvDecide how critical each external stakeholder is to the organizationvDetermine how to manage each individual external stakeholder relationshipHow Environ
19、ments affects organizationsEnvironment change occurs in two ways:vThe degree to which change in environment is occurring vThe degree of homogeneity or complexity of the environmentOrganizationCustomersUnionsSocial and PoliticalAction GroupsShareholdersCompetitorsCommunitiesTrade and IndustryAssociat
20、ionSuppliers GovernmentsMediaEmployeesFigure 3-2 The Stakeholders of an OrganizationvEnvironment Uncertainty:A driving force that influences organizational decisions.In other words,the extent to which managers have knowledge of and are able to predict change their organizations external environment
21、is affected by complexity of the environment(the number of components in an organizations external environment),and the degree of change in environment components(How dynamic or stable the external environment is)Environmental Uncertainty MatrixvCell(simple,stable)Stable and predictable environment:
22、few components in environment,components are somewhat similar and remain basically the same,minimal need for sophisticated knowledge of components.vCell(Simple,Dynamic)Dynamic and unpredictable environment:few components in environment,components are somewhat similar but are in continual process of
23、change,minimal need for sophisticated knowledge of components.vCell(Complex,Stable)Stable and predictable environment:many components are there in the environment,components are not similar to one another and remain basically the same,and high need for sophisticated knowledge of components.vCell(Com
24、plex,Dynamic)Dynamic and unpredictable environment:many components in environment,components are not similar to one another and are in continual process of change,and high need for sophisticated knowledge of componentsModerate UncertaintyLeast UncertaintyMost UncertaintyModerate UncertaintyDegree of
25、 ChangeDynamicStableComplexSimpleFigure 3-3 Environment Change,Complexity,and UncertaintyHow Organizations Respond to Their EnvironmentvCan set a boundary spanner to accumulate information through contact outside of the organization.Environment scanning is the process of monitoring the environment.v
26、Establish information summarize system and deliver information in a form that pertinent to a managers needsvThrough Strategic response to maintain the status quo,altering the current strategy,or adopting a new strategy.vIf necessary,firms can combine,purchase,or form new business partnership or alli
27、ance with another firm.vOrganization can incorporate flexibility in its structural design to adapt to its environmental conditionvAnd also can change the nature of the competitive conditions in its environment to suit its needs.vThrough pursuing new or changed relationship with suppliers,customers,a
28、nd regulators can alter the organizations environment in a way that favors the organization.The Environment and Organizational Effectiveness vSystems resource approach:Acquiring the resources needed from the environmentvInternal processes approach:Combining the resources attained from environment in
29、 an efficient and productive manner focuses on transformation processes(production efficiencies)vGoal approach:Facilitates the attainment of organizational goalsfocuses on outputs vStrategic constituencies approach:Satisfy the strategic constituents in the environmentfocuses on feedback(satisfying s
30、takeholders)vCombined approach:to make it easier to acquire future resource from the environment.vOrganizational Effectiveness requires that the organization is do a good job of procuring resources,managing them properly,achieving its goals,and satisfying its constituencies.P.41-The Model of Organiz
31、ational EffectivenessLevel of International Business ActivityvDomestic Business:they mostly acquire all of its resources and sell all of their products or services within a single country.vInternational Business:they normally based in a single country,yet acquire a meaningful share of its resources
32、and/or revenues from other countries.vMultinational Corporate(MNC):the business have transcended national boundaries and buys raw materials,finance,and manufactures and sells their products and services in a world-wide marketplacevGlobal Business:the business that have transcended national boundarie
33、s and are not committed to a single home country Level of International Business ActivityLowestHighestDomesticBusinessInternationalBusinessMultinationalBusinessGlobal BusinessFigure 3-3 Level of International Business ActivityOrganizations Global PerspectivevEthnocentric:Is the parochialistic belief
34、 that the best work approaches and practices are those of the home country;vPolycentric:the attitude view that the managers in the host country know the best work approaches and practices for running their business;vGeocentric:is a world-oriented view that focuses on using the best approaches and pe
35、ople from around the globe View:Figurev3-12 on page 43Organizational Design DifferencesThe following factors should be considered:vThe complexity of the organization;vAuthority,decision making,evaluation and control issues are different;vRewards and punishment are different;vIdentification of the or
36、ganization difference;vRecruiting,Staffing,and Development of HR.Types of Global OrganizationsvTNC=Transnational CorporationThe business that maintains significant operation in more than one country simultaneously and decentralizes decision making in each operation to the local countryvMNC=Multinati
37、onal CorporationThe corporate that has significant operations in two or more countries simultaneously but manages the operations from a base home country The International Environment for Global organizationsvEconomic systems may differentvPolitical structures are variable vLegal complexitiesvLocal
38、customs and beliefsvEducational levels are differentvManagement attitudes are variablevLanguage barriersvCultural differencesThe Stages of GlobalizationvStage I ExportingIndirect ExportingDirect ExportingvStage II ContractingHiring Foreign AgenciesEstablish Contractors/Partners relationshipLicensing
39、 and Franchising vStage III InvestingBuilding Foreign subsidiariesPurchasing and mergingDirect investmentView pp45“how business go global”The Pros and Cons of Different methods Enter into Foreign MarketvImporting and Exportingv Pros:(1)small cash outlay;v (2)Low risks;v (3)No adaptation necessary on
40、 its productsv Cons:(1)High tariffs and taxes;v (2)High freight costs;v (3)Government restrictions/None-tariffs barriers.2.Licensing and FranchisingvPros:Increased profitability;Extended profitability;Available for investigation vCons:Inflexibility No rights on managementHelps competitors3.Strategic
41、 Alliance and Joint VenturevAdvantages:Quick market entryShare risks with partnersAccess to materials and technologyEasy to be accepted by foreign customersvDisadvantages:May lose core competition/technologyShared ownershipLimited control on managementMay help foreign competitors v4.Direct Investmen
42、tvAdvantages:Enhanced control on operating and managementExisting infrastructureRights to receive and distribute the profitsvDisadvantages:Most complexityLong-term to get returnsThe highest risksGreater uncertainty Challenges in Managing Global EnvironmentPolitical/Legal Environment1.Govermental Sta
43、bility 2.Incentives for International Trade 3.Control on international Trade 4.Economic communities EconomicEnvironmentEconomic System 2.Natural Resources 3.Infrastructure Cultural EnvironmentValues,symbol,beliefs and languageIndividual differences across cultures 1.International Management Function
44、s Review and Practicev1.Why managers should consider change?2.What are the dimensions should be considered in general environment and task environment?3.In managing organizational change,what should the management do?Managing changing should begin from where,and with who?4.Why the management should
45、consider the stakeholders management?5.How the environments affected on organizations?6.Point out the levels of international business activities and their characters.7.What are the Global attitudes toward international operations?And their key nature on organizational design?8.What are the stages are involved in business globalization?And each steps main activities?9.How many modes are there in business enter into foreign market?And the features of each?
