Organization Environment Interface
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Transcript of 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.
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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.
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Task EnvironmentDirec
t actio
n
Indirect
action
Elements of Task
environment
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Elements of an Organizational Environment
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External stakeholdersCustomer
s
Special groups
Media
Competitors
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Employees
Shareholders & Board of Directors
Internal Stakehold
ers
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ENVIRONMENTAL IMPACT ON ORGANIZATIONS
Burns and Stalker
Lawrence and Lorsch
Duncan model
TH
EO
RI
ES
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Burns and Stalker
Mechanistic Organization:works in a relatively simple environmentTasks are segmentedVertical CommunicationPosition based authorityHierarchical & impersonal controlsAutocratic , programmed , computational
decision makingHigh FormalizationHigh centralization
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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
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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.
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DUNCAN: A MODEL FOR “RIGHT” ORGANIZATIONAL STRUCTURE.
The framework was based on a conceptualization of environmental uncertainty of two dimensions-
Environmental Change
Environmental Complexity
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STATEGIES FOR MANAGING ENVIRONMENTThe strategies used by the
organization to reduce uncertainty are:
• Domain Choice
• Recruitment
• Vertical Integration
• Buffering
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Strategies (continued)…
• Smoothening
• Advertising
• Contracting
• Mergers/Acquisitions/Strategic Alliances
• Lobbying
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Conclusion
An illustrated case study of
McDonalds
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PRESENTED BYANIRBAN PAULIPSHITA GHOSHJAYATI BANERJEEMOHUL MUKHERJEE