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Organizational Theory and Design

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Organizational Theory and Design
ot26/12/2012

An Organization’s Environment
(a) Competitors, industry size and
(g) Recession, unemployment rate, competitiveness, related issues inflation rate, rate of investment,
(j)
(a)
(b) Suppliers, economics, growth
International
Industry manufacturers, real
(h) City, state, federal laws
Sector
Sector estate, services and regulations, taxes,
(i)
(b)
(c) Labor market, services, court system,
Sociocultural
DOMAIN
Raw Materials
Sector
employment agencies, political processes
Sector
universities, training
(i) Age, values, beliefs, schools, employees education, religion,
(c)
(h) in other companies, work ethic, consumer
Human
Government
Resources
unionization and green
Sector
ORGANIZATION
Sector
(d) Stock markets, movements banks, savings and
(j) Competition from
(g)
(d) loans, private and acquisition by
Economic
Financial
Conditions
Resources investors foreign firms,
Sector
Sector
(e) Customers, clients, entry into overseas
(e)
(f)
Market
potential users of products markets, foreign
Technology
Sector
Sector
and services customs, regulations,
(f) Techniques of production, science, exchange rates computers, information technology
Thomson Learning
© 2004
4-2

Chapter Four
The External Environment

Thomson Learning
© 2004

Differences in Goals and
Orientations Among Organizational
Departments

Organizational Departments
Differentiate to Meet Needs of
Sub-environments
President

Characteristic

Sales
Division

Scientific
Sub-environment

Manufacturing
Sub-environment

Market
Sub-environment

Labor

Professional associations Raw Suppliers materials Production equipment Customers
Advertising
Competitors agencies
Distribution
system

Thomson Learning
© 2004

4-3

Environmental Uncertainty and
Organizational Integrators
Industry:

Plastics

Foods

Container

Environmental
Uncertainty

High

Moderate

Low

Departmental

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