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Summaries: book " Organization Theory", Chapter 11

Hoofdstuk 11
Vak

Organizational Structure (EBP670C05)

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Studenten deelden 491 documenten in dit vak
Studiejaar: 2014/2015
Boek in lijstOrganisation Theory
AuteursStephen P. RobbinsNeil Barnwell
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Chapter 11: Managing the Environment

Every organisation faces some degree of environmental uncertainty; no organisation can completely isolate itself from environmental forces:

Organisations require financial, material and human resources as inputs and clients or custtomers as outputs.

Management’s quest to control its environment

Successful interaction with the environment is necessary for the organisation’s viability and survival

Large size is positively associated with increased power to reduce environmental uncertainty.

Internal strategies

= Strategies which adapt and change organisational practices to better fit the environment

  1. Domain choice Domain= part of the environment in which the organisation operates e. moving into environmental niche that has the advantage of fewer or less powerful competitors Multidivisional companies have greater ability to withstand changes in their environments than single- division companies if management cannot change to a more favourable domain  choose to broaden its strategy to take a generalist format small professional firms with specific skills  select environmental domain that matches their knowledge and capabilities
  2. Recruitment Recruitment of staff with appropriate skills e. high tech firms hire scientists from other companies to gain the technical expertise possessed by their competitors
  3. Environmental scanning Scrutinising the environment to identify actions by competitors, government, unions and the like that might impinge on the organisation’s operations  Can lead to accurate forecast reduce uncertainty

Attending lunches, trade fairs, conferences, industry gatherings, reading business journals

Boundary spanners = staff who operate at the periphery of the organisation, performing organisationally relevant tasks, and relating the organisation to elements outside it (examples: sales representatives, market researchers, purchasing managers, lobbyists, public relations specialists and recruitment specialists)

  1. Buffering = protecting the operating core from environmental variations in supply and demand (input and output side) Input side: stockpile materials and supplies, reduce reliance on one supplier, undertake preventive maintenance or recruit and train new employees

Output side: use of inventories, growth in the number of casuals in the workforce over the past few years The benefits must be appraised against the costs; more often used in routine firms and manufacturing firms

  1. Smoothing = levelling out the impact of fluctuations in the environment by offering incentives to environmental units to regularise their interactions with the organisation Used mostly in service industries e. telecommunication providers, retail stores (Clothing), car rental companies, magazine publishers, sports clubs
  2. Rationing = the allocation of organisational products or services according to a priority system e. hospitals, universities, post offices and restaurants
  3. Improving information processing Main cause of uncertainty  lack of information Modern information technologies help organisations to respond to environmental changes with minimum impact on operating core
  4. Geographic dispersion Uncertainty varies with location  Lessening risk by operating in multiple locations

External strategies

= efforts designed to change the environment

  1. Bridging = process by which managers endeavour to regulate their environments through negotiation, cooperation, exchange of information and other forms of mutual benefit Social actions of managers to create supportive environment for the organisation, to sense threats and opportunities and to create obligations and favours which can be called in when needed Political process; personal relationships important to reduce uncertainty
  2. Advertising Advertising is a device that management uses to reduce its dependence on fickle consumers and new alternatives offered by competitors
  3. Contracting Protects the organisation from changes in quantity or price on either input or the output side e. long- term contracts with suppliers or retailers
  4. Co- opting = the absorption of those individuals or organisations that threaten a given organisation’s stability e. selective appointments to the organisation’s board of directors, reduce criticism by co- opting to the board of various groups that may be critical of that organisation
  5. Coalescing = the combining of an organisation with one or more organisations for the purpose of joint action
Was dit document nuttig?

Summaries: book " Organization Theory", Chapter 11

Vak: Organizational Structure (EBP670C05)

491 Documenten
Studenten deelden 491 documenten in dit vak

Universiteit: Rijksuniversiteit Groningen

Was dit document nuttig?
Chapter 11: Managing the Environment
Every organisation faces some degree of environmental uncertainty; no organisation can completely
isolate itself from environmental forces:
Organisations require financial, material and human resources as inputs and clients or custtomers as
outputs.
Management’s quest to control its environment
Successful interaction with the environment is necessary for the organisation’s viability and survival
Large size is positively associated with increased power to reduce environmental uncertainty.
Internal strategies
= Strategies which adapt and change organisational practices to better fit the environment
1. Domain choice
Domain= part of the environment in which the organisation operates
e.g. moving into environmental niche that has the advantage of fewer or less powerful
competitors
Multidivisional companies have greater ability to withstand changes in their environments
than single- division companies
if management cannot change to a more favourable domain choose to broaden its
strategy to take a generalist format
small professional firms with specific skills select environmental domain that matches
their knowledge and capabilities
2. Recruitment
Recruitment of staff with appropriate skills
e.g. high tech firms hire scientists from other companies to gain the technical expertise
possessed by their competitors
3. Environmental scanning
Scrutinising the environment to identify actions by competitors, government, unions and the
like that might impinge on the organisation’s operations
Can lead to accurate forecast reduce uncertainty
Attending lunches, trade fairs, conferences, industry gatherings, reading business journals
Boundary spanners = staff who operate at the periphery of the organisation, performing
organisationally relevant tasks, and relating the organisation to elements outside it
(examples: sales representatives, market researchers, purchasing managers, lobbyists, public
relations specialists and recruitment specialists)
4. Buffering
= protecting the operating core from environmental variations in supply and demand (input
and output side)
Input side: stockpile materials and supplies, reduce reliance on one supplier, undertake
preventive maintenance or recruit and train new employees

Andere studenten bekeken ook

Gerelateerde documenten