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Environment in Industry.
- G Ojha
Re
g
So
cio
Di - Cu
me
l
ns tura
ion l
Su
gy s
te er
ra tn
St ar
P
Owners
Employees
Physical
Environment
Culture
gy
nolo
Tech nsion
e
Dim
ula
tor
s
Competitors
er
tom
Cus
Po
lit
Dimico-l
en ega
sio l
n
International
Dimension
rs
e
i
l
pp
ic
m
o ion
n
s
o
Ec en
m
Di
General Environment.
Government regulations, Laws, Policies and activities
influence organizational performance in a significant way.
Technological environment includes changes in technology
that affect the way organizations operate and service they
provide.
The economic dimensions include GDP, Wage rates,
Unemployment rates, Taxes, Monetary and Fiscal Policy,
Consumer price index, Interest rates & Inflation.
Task Environment I.
It includes those elements which have a direct
working relationship with the Organization. Some of
the critical variables in task environment are:
Customers
Suppliers
Labour
Competition
Internal Environment.
It consists of employees, management and the shared
organizational culture.
Analysis of internal environment enables the top
management to assess the strengths and weaknesses of
the organization.
This assessment has implication for human resource
management policy, procedure and employee training &
development.
Environmental Scanning.
Such scanning is significant for planning. This also
enables proper setting of goals and adaptation of
strategy in the decision making process.
Contingency Theory.
To manage its environment effectively, an organisation
should design its structure to fit its environment.
The
three
important
dependence are :
factors
A. Importance of resource.
B. Extent of discretion over resource allocation.
C. Paucity of alternatives.
in
determining
Environmental Uncertainty.
This uncertainty increases or decreases as per variations
in the following parameters :
Homogeneity Vs. Heterogeneity (the number & diversion)
Stability Vs. Turbulence (rate & magnitude of change)
Resource Security Vs. Abundance (availability of reason)
Hostility Vs. Supportiveness (Extent of competition and level of
acceptance of the organization)
more
suitable
Low
Mechanistic
Structure
Low Differentiation
Low Integration
Centralized Decision
Making
Standardization
High
Organic Structure
Complex Structure
High Differentiation
High Integration
Decentralized Decision
Making
Mutual Adjustment
Conclusion.
Adaptive Capacity is the ideal quality of a manager to
handle
organizations
environment
marked
by
uncertainty, complexity and volatility.
It is the ability to understand the context and to
recognize and seize opportunities with confidence and
optimism.
Organizational Environment will always be dynamic but a
timely and proper response is the answer.
Questions?
Thank you!