The External Environment and Organizational Culture

The External Environment and Organizational Culture Chapter 2 I. Systems Theory of the Organization a. Figure b. Open systems – organizations that are affected by and that affect their environment c. Inputs – goods and services organizations take in and use to create products or services i. Raw materials, services, equipment, capital, information d. Outputs – products and services organizations create ii. Products, services e. External environment – all relevant forces outside a firm’s boundaries such as competitors, customers, the government, and the economy iii. Competitive environment – immediate environment surrounding a firm 1. Suppliers, customers,†¦show more content†¦Scenario Development – narrative that describes a particular set of future conditions xxi. Breaks down environmental factors into unattractive and attractive points v. Forecasting – method for predicting how variables will change the future w. Benchmarking – process of comparing organization’s practices and technologies with those of oth er companies xxii. Identifies the best-in-class performance by a company in a given area and then compares firm’s processes to it V. Responding to the Environment x. Adapting to the environment: Changing yourself xxiii. Empowerment – process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization xxiv. Buffering – creating supplies of excess resources in case of unpredictable needs xxv. Smoothing – leveling normal fluctuations at the boundaries of the environment xxvi. Flexible processes – methods for adapting the technical core to changes in the environment 6. Example: one size/design fits all y. Influencing your Environment xxvii. Independent strategies – strategies that an organization acting on its own uses to change some aspect of its current environment 7. 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