principles of management Orag&Environ.ppt
- 2. 2–2 Environment - Environment -The Systems Approach • System Defined A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. • Basic Types of Systems Closed systems Are not influenced by and do not interact with their environment (all system input and output is internal). Open systems Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments.
- 3. The Organization as an Open System
- 4. 2–4 Implications of the Systems Approach • Coordination of the organization’s parts is essential for proper functioning of the entire organization. • Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. • Organizations are not self-contained and, therefore, must adapt to changes in their external environment.
- 5. 3–5 Defining the External Environment Defining the External Environment • External Environment External Environment Those factors and forces outside the organization that Those factors and forces outside the organization that affect the organization’s performance. affect the organization’s performance. • Components of the External Environment Components of the External Environment Specific environment: Specific environment: external forces that have a external forces that have a direct and immediate impact on the organization. direct and immediate impact on the organization. General environment: General environment: broad economic, socio- broad economic, socio- cultural, political/legal, demographic, technological, cultural, political/legal, demographic, technological, and global conditions that and global conditions that may may affect the organization. affect the organization.
- 6. 3–6 Exhibit 3–9 Exhibit 3–9 The External Environment The External Environment
- 7. 3–7 How the Environment Affects Managers? How the Environment Affects Managers? Two ways the environment affects managers Two ways the environment affects managers • Through the Environmental Uncertainty present Through the Environmental Uncertainty present • Stakeholder relationship that exist between the Stakeholder relationship that exist between the organization and its external constituencies. organization and its external constituencies.
- 8. © 2007 Prentice Hall, Inc. All rights reserved. 3–8 How the Environment Affects Managers? How the Environment Affects Managers? • Environmental Uncertainty Environmental Uncertainty The extent to which managers have knowledge of The extent to which managers have knowledge of and are able to predict change their organization’s and are able to predict change their organization’s external environment is affected by: external environment is affected by: Complexity of the environment: Complexity of the environment: the number of components the number of components in an organization’s external environment. in an organization’s external environment. Degree of change in environmental components: Degree of change in environmental components: how how dynamic or stable the external environment is. dynamic or stable the external environment is.
- 9. 3–9 Exhibit 3–11 Exhibit 3–11 Environmental Uncertainty Matrix Environmental Uncertainty Matrix
- 10. 3–10 Stakeholder Relationships Stakeholder Relationships • Stakeholders Stakeholders Any constituencies in the organization’s environment Any constituencies in the organization’s environment that are affected by the organization’s decisions and that are affected by the organization’s decisions and actions actions • Why Manage Stakeholder Relationships? Why Manage Stakeholder Relationships? It can lead to improved organizational performance. It can lead to improved organizational performance. It’s the “right” thing to do given the interdependence It’s the “right” thing to do given the interdependence of the organization and its external stakeholders. of the organization and its external stakeholders.
- 11. 3–11 Exhibit 3–12 Exhibit 3–12 Organizational Stakeholders Organizational Stakeholders
- 12. 3–12 Managing Stakeholder Relationships Managing Stakeholder Relationships 1. 1. Identify the organization’s external Identify the organization’s external stakeholders. stakeholders. 2. 2. Determine the particular interests and Determine the particular interests and concerns of the external stakeholders. concerns of the external stakeholders. 3. 3. Decide how critical each external stakeholder Decide how critical each external stakeholder is to the organization. is to the organization. 4. 4. Determine how to manage each individual Determine how to manage each individual external stakeholder relationship. external stakeholder relationship.