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Dr.

Serdar KALE
IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

The Environment of Organization


International and Global Environment

The general Environment


Cultural sector

Historical background, ideologies values and norms of society

Social sector

Class structure, mobility patterns, life styles and demographics

Legal sector

Constitutional considerations, nature of legal system, specific laws

Political sector

General political climate

Economic sector

General economic framework, private vs. public ownership, banking system

Technological sector

The level of scientific and technological advancement in society

Physical sector
The nature, quantity and quality of natural resources, climate

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

Interorganizational Network (Task Environment)


Unions
Suppliers
Special interest groups
Competitors
Partners
Customers
Regulatory agencies

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

Theories of organization environment relations


Contingency Theory (Burns and Stalker, 1961; Lawrence & Lorsch, 1967)
Mechanistic vs. Organic Organizations
Differentiation vs. Integration
Resource Dependence Theory

(Pfeffer & Salacik, 1978)

Power and dependence relationships


Inputs (capital, raw material, labor, customers, knowledge and
equipment)
Criticality
Scarcity
Buffer
Boundary spanning

Population Ecology

(Hannan and Freeman, 1974)

Darwins survival of the fittest principle


Generalist vs. Specialist
Variation the birth of an organization
Selection environment selects organizations on basis of fitness
Retention survival of an organization

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

Institutional Theory

(Selznick, 1957; Meyer and Rowan, 1977; DiMaggio and Powell, 1983)

Institutionalization the process by which actions are repeated and given similar
by self and others
Rationalized myths
Isomorphism
Coercive institutional pressures - Legal Political Influences
Normative institutional pressures - Cultural Influences
Mimetic institutional pressures - Social Influences
Social Legitimacy

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

ECONOMY A

ECONOMY B

ECONOMY D

ECONOMY C

ECONOMY F

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

ECONOMY A

NETWORK

ORG

GENERAL ENVIRONMENT

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

PHYSICAL
FACTORS

SOCIAL
FACTORS
TECHNOLOGICAL
FACTORS

LEGAL
FACTORS

NETWORK

ORG

ECONOMIC
FACTORS
POLITICAL
FACTORS

CULTURAL
FACTORS

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

INTERORGANIZATIONAL NETWORK

A
C

F
ORG

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

INPUTS

TRANSFORMATION
PROCESS

OUTPUTS

FEEDBACK / CONTROL

Dr. Serdar KALE


IZMIR INSTITUTE OF TECHNOLOGY
ENGINEERING MANAGEMENT PROGRAM
ORGANIZATION THEORY AND MANAGEMET 02

KEY CONCEPTS OF SYSTEMS THEORY


Sub systems or components
Holism, synergism, organicism and gestalt
Open systems vs. closed systems
Input - Transformation - Output Model
System boundaries
Steady state, dynamic equilibrium and homeostasis
Feedback
Hierarchy
Internal elaboration
Multiple goal seeking
Equifinality of open systems

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