CHAPTER 3: The Task and Macro Environments of Management

7/25/2019 CHAPTER 3: The Task and Macro Environments of Management

1/21

CHAPTER 3: The Task and Macro

Environments of Management


2/21

Introduction to the environments ofIntroduction to the environments of

managementmanagement

ENVIRNMENT! " MANA#EMENT:

$ Task environment$ Marco environment

$ Internationa% Environment


3/21

Task environment

Contains four ke& grou's of stakeho%ders

that managers need to 'a& attention to:

CostumersMem(ers

)ners

ther organi*ations +e,g,- su''%iers andcom'etiors.


4/21

Macro Environments

Contains four dimensions that managers

must dea% )ith at the regiona% or nationa%

%eve%:

$ !ociocu%tura% environment

$ Natura% environment

$ Po%itica%/%ega% environment$ Economic/techno%ogica% environment


5/21

The Mainstream Vie) of0e& !takeho%ders in the

Task Environment

!takeho%ders / is an& grou' )ithin or outside the

organi*ation that is direct%& affected (& the organi*ation and

has a stake in its 'erformance


6/21


7/21

$CustomersThe stakeho%ders )ho consume an

organi*ations 'roduct and service out'uts,

IN"12ENCE " C2!TMER! N MANA#ER!

$Pa&ing customers are the %ife (%ood of (ussiness organi*ation$Customer service is es'ecia%%& im'ortant (ecause (etter

service %eads to greater %o&a%t& +re'eat (usiness.- )hice in

turn %eads to higher 'rofits,

IN"12ENCE " MANA#ER! N C2!TMER!$usiness managers tr& to deve%o' a sta(%e or gro)ing

cutomer (ase,$Accom'%ished in a variet& of )a&s- inc%uding advertising and

marketing- 'roviding e4ce%%ent 'roducts and services at

resona(%e 'rices- designing 'roducts and services to meet theneeds of cutomers- and out'erforming com'etitors,

$!erving customers 'ermits ma4imi*ing an organi*ation5s

financia% via(i%it&,


8/21

$Mem(ersare em'%o&ees and vo%unteers )ho )ork for or

(e%ong to an organi*ation,

IN"2ENCE " MEMER! N MANA#ER!

$Primar& goa% of managers is to ma4imi*e mem(ers5 'roductivit& in the

)ork'%ace$If mem(ers are 'roducive- then managers )i%% (e eva%uated as doing a

good 6o(,$Managers )ho ada't their st&%e to the strengths and )eaknesses of

mem(ers )i%% (e more successfu%,

IN"2ENCE " MANA#ER! N MEMER!$Ma4imi*e mem(ers5 efforts (& a''ea%ing to their se%f/interest$1inking thier on/the/6o( 'roductivit& to thier 'a& or future 'romotions$Their re%ationshi's )ith thier managers have an inf%uence on

mem(ers motivation- se%f/confidence- identit& and 6o( satisfaction


9/21

$)nersare stakeho%ders )ho make the (asic decisions

as to )hat an organi*ation is and does and areres'onsi(%e for the creation and overarching

governance of the organi*ation,

IN"12ENCE " 7NER! N MANA#ER!

$Managers in (oth (usiness and non(usiness organi*ationsmust %ook out for o)ners5 interest (& fo%%o)ing 'ro'er

accounting 'rocedure- 'roviding re'orts a(out the

organi*ation5s 'erformance- and taking res'onsi(i%t& for their

decisions and actions,

IN"12ENCE " MANA#ER! N 7NER!$"ocus on the materia%s interest of the o)ners$)ners de'end on the 6udgment and information 'rovided (&

managers$Managers have a %ot of inf%uence a(out )hat kno) and thus

)hick kind of decisions o)ners )i%% make,


10/21

$ther rgani*ationare e4terna% stakeho%ders %inked to an

organi*ation, +e,g, su''%iers- com'etitors- etc.

IN"2ENCE " MEMER! N MANA#ER!

$!u''%iers and com'etitors set contraints on )hat managers do,

IN"2ENCE " MANA#ER! N MEMER!

$The goa% of management is to gain as much contro% as 'ossi(%e over

su''%iers and secure advantages over com'etitors,$Managers ma& a%so (e sensitive to concern of organi*ations other

than su''%iers and com'etitors- es'ecia%%& )hen it enhances the(ottom %ine,$Managers ma& tr& to im'rove their organi*ation5s financia%

'erformance (& enhancing its re'utation,


11/21

The Mainstream Vie) f The

"our 8imentions In The MacroEnvironment


12/21


13/21

$!ociocu%tura% Environment

/ refers to the norms- customs- and va%ues of a

genera% 'o'u%ation and its demogra'hic su(grou's,

INFUENCE OF SOCIOCULTURAL ENVIRONMENT ON MANAGERS

$This environment inf%uences the needs and )ant of customers-

e4'ectation of mem(ers and o)ners- and the attitude of com'etitors

and su''%iers,$As a resu%t- managers must monitor trends in demogra'hics- hea%th

care- education- and other socia% institutions- among other areas,$Managers ada't to trends in the scociocu%tura% environment so that

the& can ma4imi*e the materia% gains for their organi*ation,

INFUENCE OF MANAGERS ON SOCIOCULTURAL ENVIRONMENT

$ne )a& that managers can sha'e 'u'%ic o'inion and sociocu%tura%

va%ues is (& su''orting think tanks that 'romote thier organi*ationa%

interest,

Think Tank / is an organi*ation that conducts research to inform

and inf%uence areas such as socia% and 'u(%ic 'o%ic&- techno%og&and defence


14/21

$Another )a& that managers tr& to sha'e sociocu%tura% environment is

via the media


15/21

$Natura% Environment/ com'osed of a%% %iving and non%iving things that

have no (een created (& human techno%og& or

human activit&,INFUENCE OF NATURAL ENVIRONMENT ON MANAGERS

$Managers de'end on the natura% environment to dra)

organi*ationa% in'uts +eg,- ra) materia%s- natura% resources-

minara%s- )ater- air. and to dis'ose of organi*ationa% out'uts +eg,-

Products- )aste.$Natura% resources can serve as in'uts +e,g- farm%and to gro)

food- mines for getting minera%s. and can a%so e%' to get rid of

organi*ationa% )aste +e,g- forest %and to convert car(on dio4ide

into o4&gen

Ecological footprint/ refers to ho) man& of earth5s natura% resources-

measures in acres- are re9uired to sustain human consum'tion and to

a(sor( the resu%ting )aste,

is (ecoming a 'o'u%ar )a& for managers to think a(out ho) man&

natura% resources their organi*ations use,


16/21

INFUENCE OF MANAGERS ON NATURAL ENVIRONMENT

$A gro)ing socia% a)aness of eco%ogica% 'ro(%ems has 'rom'ted

managers to (ecome increasing%& sensitive to the natura%

environment,$+"igure 3,. The a''roach that managers take to the natura%

environment varies a %ong continuum, ecause their e4'%icite

em'hasis on mu%ti'%e forms of )e%%/(eing is sensitive to the natura%

environment- mu%tistream managers )ou%d tend to (e farther to the

right on the the continumm than are mainstream managers,Obstrctionist/ the %east sensitive to the natura% environment!"f"nsi#" strat"g$/ managers do on%& as much as %ega%%& re9uiredMark"t Approach/ managers sho) concern for environmenta%

concern in re'onse to demands or o''ortunities in the market '%ace,Acco%o&ation or Stak"hol&"r/ goes (e&ond the market

a''roach and res'ons to the environmenta% concerns of variousstakeho%der grou's- inc%uding customers- the %oca% communit&-

(usiness 'artners- and s'ecia% interest grou's,


17/21

$Po%itica%/1ega% Environment

/ inc%udes (oth the 'revai%ing 'hi%iso'h& and o(6ectives of

the various of government- as )e%% as their ongoing %a)s

and regu%ations

T)o (asic varieties of ca'ita%isim:$!oc%"ntational Capitalis%/ )hich is 'reve%ent in

Eng%ish/s'eaking countries, Is characteri*ed (& an em'hasison detai%ed contracts- 'u(%ic financia% re'orts- management

inde'endence and rights,$Rational Capitalis%/ is )hich characteri*ed (& an

em'hasis on re%ationa% contracts- the %ong term re'utations

of organi*ations- and interde'endence and rights ofstakeho%ders,

Managers invest considera(%e resources in managing

the 'o%itica%/%ega% environment,


18/21

$Economic/Techno%ogica% Environment

/ refers to ho) financia%%& resources are used and

distri(uted )ithin a s'ecific region or countr&,

$T"chnolog$/ refers to the com(ination of e9ui'ment

and ski%%s (& )hich the a9usition- design- 'roduction-

and distri(ution of goods and services are managed,

INFUENCE OF T'E ECONOMIC ENVIRONMENT ON MANAGERS

The economic environment inc%udes factors such as the fo%%o)ing:$2nem'%o&ment rates +the ease of hiring )orkers.$Interest rates +the ease of getting )orking ca'ita%.$Inf%ation rates +The sta(i%it& of 'rices and costs.$8is'ose income +the overa%% amount of mone& that consumers

have avai%a(%e for s'ending.$Mainstream managers focus on those factors that inf%uence their

organi*ations5 short/term financia% interest,


19/21

INFUENCE OF MANAGERS ON ECONOMIC ENVIRONMENT

$A(isiti#" "cono%ics/ refers to managing 'ro'ert& and )ea%th in

such a )a& as to ma4imi*e the short/term monetar& va%ue for

o)ners,$The mainstream a''roach to economics ado'ts a materia%ist/

individua%ist 'ers'ective- )here it is assumed that a%% individua%s )i%%

'ursue their materia% se%f/interest, 7hen managers %earn to e4'ect

this (ehavior from others - it he%'s them to understand ho) the )or%d

)orks,INFUENCE OF T'E TEC'NOLOGICAL ENVIRONMENT ON MANAGERS

$Technoog& determines the choice avai%a(%e regarding ho) in'uts

are transformed into out'uts in their organi*ation,$Mainstream managers tr& to kee' a(reast of changing techno%ogies-

and the& choose those that )i%% ma4imi*e 'roductivit& and

'rofita(i%it&,


20/21

INFUENCE OF MANAGERS ON T'E TEC'NOLOGICAL ENVIRONMENT

$"or mainstream managers- an im'ortant goa% is to sta& ahead of the

com'etition,

$the focus is on deve%o'ing or finding those ne) techno%ogies thata%%o) (etter customers sevices- state/of/the/art 'roducts- and

increasing%& efficienc&$Managers inf%uence )hich kind of techno%og& is (eing deve%o'ed is

(& forming strategic a%%iances )ith universit& researchers

$Techno%og& is a%so seen as he%'ing to so%ve significat 'ro(%ems,


21/21

CHAPTER 3: The Task and Macro Environments of Management

Documents

Transcript of CHAPTER 3: The Task and Macro Environments of Management