OF MANAGEMENT
Lecture 2:
Organizational Environment
KW CHING kwching@ntu.edu.sg kwching@singnet.com.sg
What do you understand by the term “organizational environment”? The conditions within which the business operates, the sum total of all the factors which can influence the behaviors of the business and how it develops.
Do you know
The conditions that can influence the behaviours of a business exist both inside and outside the organization.
These conditions include whatever that goes on inside and outside the organization.
These behaviors of the business include whatever the people inside and outside the organization think and do.
Do you know
The Business Environment has gone from local to global.
Why should managers be concerned with understanding and managing the organizational environment?
Organizations do not exist in a vacuum
Do you know?
Management may be viewed as a process that integrates the individuals, the organization, and the organizational environment.
Management as an Integrating Activity
Individuals – Organization – Environment
Environment
(Forces)
Organization
(Design )
Individuals / Groups
(Behavior)
Conflicts in
Needs & Demands
Opportunities & Risks to the Organization
Forces that influence behaviors in the Organizational Environment
The elements of the world is constantly changing
The external organizational environment includes all outside elements that affect the organization
General environment:
Affects organizations indirectly
Task environment:
Organizational ecosystem:
Sectors that conduct transactions with the organization Formed by the interaction among a community of organizations in the environment Internal environment:
Elements within the organization boundaries
What elements / forces in the “internal environment” of the organization do you think can and will influence the behaviours of the people in the organization and how the organization develops