Management Environment
CHAPTER 2: THE MANAGEMENT ENVIRONMENT
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Explain what the external environment is and why it’s important.
Discuss how the external environment affects managers.
Define what organizational culture is and explain why it’s important.
Describe how organizational culture affects managers.
What Is External Environment?
External environment is the factors, forces, situations, and events outside the organization that affect its performance. Understanding External Environment
What Role Do Demographics Play?
Demographics, the characteristics of a population used for purposes of social studies, can and do have a significant impact on how managers manage.
Age is a particularly important demographic for managers since the workplace often has different age groups all working together.
Types of Generations
• Veteran: Those born before 1946
– 67 yrs and above
• Baby boomers: between 1946 and 1964
– App. 49 – 67 yrs
•
Generation X: born 1965 to 1977
– 36 – 48 yrs
•
Gen Y: born 1978 to 1994
– 19 – 35 yrs
•
Gen C (iGeneration): born after 1994
– Less than 19 yrs
ITM_Jan2013_Dr Rohani
Page 1
Globalization and How Does It Affect Organizations?
An important part of the environment that managers must deal with is GLOBALISATION.
Globalization is the free movement of goods, services and people across the world in a seamle ss and integrated manner.
Technology
Result in new opportunities or threats to managers.
Often make products obsolete very quickly, can change how organizations are managed.
HOW DOES THE EXTERNAL ENVIRONMENT AFFECT MANAGERS?
Three ways the external environment constrains and challenges managers:
1.
Through its Impact on Jobs and employment
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–
2.
One of the important organizational factors affected by changes in the external environment is jobs and employment.
For example, economic downturns result in higher unemployment and place constraints on staffing and production quotas for managers.
•
•
•
•
Explain what the external environment is and why it’s important.
Discuss how the external environment affects managers.
Define what organizational culture is and explain why it’s important.
Describe how organizational culture affects managers.
What Is External Environment?
External environment is the factors, forces, situations, and events outside the organization that affect its performance. Understanding External Environment
What Role Do Demographics Play?
Demographics, the characteristics of a population used for purposes of social studies, can and do have a significant impact on how managers manage.
Age is a particularly important demographic for managers since the workplace often has different age groups all working together.
Types of Generations
• Veteran: Those born before 1946
– 67 yrs and above
• Baby boomers: between 1946 and 1964
– App. 49 – 67 yrs
•
Generation X: born 1965 to 1977
– 36 – 48 yrs
•
Gen Y: born 1978 to 1994
– 19 – 35 yrs
•
Gen C (iGeneration): born after 1994
– Less than 19 yrs
ITM_Jan2013_Dr Rohani
Page 1
Globalization and How Does It Affect Organizations?
An important part of the environment that managers must deal with is GLOBALISATION.
Globalization is the free movement of goods, services and people across the world in a seamle ss and integrated manner.
Technology
Result in new opportunities or threats to managers.
Often make products obsolete very quickly, can change how organizations are managed.
HOW DOES THE EXTERNAL ENVIRONMENT AFFECT MANAGERS?
Three ways the external environment constrains and challenges managers:
1.
Through its Impact on Jobs and employment
–
–
2.
One of the important organizational factors affected by changes in the external environment is jobs and employment.
For example, economic downturns result in higher unemployment and place constraints on staffing and production quotas for managers.