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Lecture_7 management

The document is a lecture on management, specifically focusing on Chapter 3, which covers the internal and external environments affecting organizations. It discusses the characteristics of these environments, including the general and specific environments, and factors such as environmental change, complexity, and resource scarcity. Additionally, it highlights the importance of organizational culture and the influence of socio-cultural, political, and legal factors on management practices.

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deedar55755
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Download as PDF, TXT or read online on Scribd
2 views

Lecture_7 management

The document is a lecture on management, specifically focusing on Chapter 3, which covers the internal and external environments affecting organizations. It discusses the characteristics of these environments, including the general and specific environments, and factors such as environmental change, complexity, and resource scarcity. Additionally, it highlights the importance of organizational culture and the influence of socio-cultural, political, and legal factors on management practices.

Uploaded by

deedar55755
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to Management

LECTURE 7:

Introduction to
Management
MGT 101
Introduction to Management

In lecture 6 we discussed

Topics from Chapter 3:

• Omnipotent view of management

• Symbolic view of management

• The organizational culture

• How employees learn culture ?


Introduction to Management (Chapter 3)

Today in Chapter 3 we will discuss

• Internal vs. External Environment

• Characteristics of External
Environment

• General Environment

• Specific Environment

• Internal Environment
Introduction to Management (Chapter 3)

Chapter 3:

Organizational Culture
&
Environment
Introduction to Management (Chapter 3)

Internal Vs. External


Environment
Introduction to Management (Chapter 3)

Internal Environment
Consists of the trends and events within an
organization that affect the management,
employees, and organizational culture
 important because it affects what
people think, feel, and do at work
 organizational culture is the set of key
values, beliefs, and attitudes shared by
organizational members
Introduction to Management (Chapter 3)

External Environment
Those factors and forces outside the
organization that affect the organization’s
performance.
Introduction to Management (Chapter 3)

Characteristics of
External Environment
Introduction to Management (Chapter 3)

Components of the External Environment


Specific environment: external forces that
have a direct and immediate impact on the
organization.
General environment: broad economic,
socio-cultural, political/legal, demographic,
technological, and global conditions that
may affect the organization.
Introduction to Management (Chapter 3)
Introduction to Management (Chapter 3)

Characteristics of
Changing External Environments
Environmental Change

Environmental Complexity

Resource Scarcity

Uncertainty
Introduction to Management (Chapter 3)

Environmental Change is the rate at


which a company’s environments
change

 stable environments
 dynamic environments
Introduction to Management (Chapter 3)

Punctuated equilibrium theory

Companies cycle through long, stable


periods and shorter, dynamic
environments.
Introduction to Management (Chapter 3)

Environmental Complexity:

the number of external factors in the


environment that affect organizations
Introduction to Management (Chapter 3)

Resource Scarcity

The degree to which an organization’s


external environment has an
abundance or scarcity of critical
organizational resources
Introduction to Management (Chapter 3)
Introduction to Management (Chapter 3)
Introduction to Management (Chapter 3)

General Environment
Introduction to Management (Chapter 3)

Components of general environment:

Economy
Technological trends
Socio-cultural trends
Political / Legal trends
Introduction to Management (Chapter 3)

Economy:

• Growing vs. shrinking economies

• Predicting future economic activity

• Business confidence indices


Introduction to Management (Chapter 3)

Technology--
Input Knowledge Output
Tools
Techniques
Raw
Products
Materials

Information Services
Introduction to Management (Chapter 3)

Socio-cultural Components

• Demographic changes

• Changes in behavior, attitudes, and


beliefs
Introduction to Management (Chapter 3)

Factors Influencing the Strength of Culture


• Size of the organization
• Age of the organization
• Rate of employee turnover
• Strength of the original culture
• Clarity of cultural values and beliefs
Introduction to Management (Chapter 3)

Political & Legal Environment

 Legislation
 Regulations
 Court decisions
Introduction to Management (Chapter 3)

Specific Environment
Introduction to Management (Chapter 3)

Customer

Competitor

Supplier

Industry Regulation

Advocacy Group
Introduction to Management (Chapter 3)

Customer
Monitoring customer wants and needs is
critical for business success
Reactive customer monitoring
 responding to problems, trends, and
events

Proactive customer monitoring


 anticipating problems, trends, and
events
Introduction to Management (Chapter 3)

Competitor

Competitive Analysis

Deciding who your competitors are

Anticipating competitors’ moves

Determining competitors’ strengths and weaknesses


Introduction to Management (Chapter 3)

Supplier

Buyer Suppliers Supplier


Dependence Dependence

Behavior (Opportunity) Behavior (Relationship)


Introduction to Management (Chapter 3)

Industry Regulations

Consists of regulations and rules that


govern the business practices and
procedures of specific industries,
businesses, and professions
Introduction to Management (Chapter 3)

Advocacy Groups
 Groups of concerned citizens who band
together to try to influence the business
practices of specific industries,
businesses, and professions

 Techniques to try to influence companies


 public communications
 media advocacy
 product boycotts

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