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The organization and the environmental dimensions
1Jun2008 Filed under: Management, Organization and the environment, Organizations Author: DaryooshA. Some environments are more active than others, and the level of this activity depends on three dimensions of the environment.
B. Change
1. Embraces frequency, complexity, and uncertainty.
2. Stable environment: few changes in products, technology or customer values; stable economic conditions and government policies; friendly competition.
3. Dynamic environment: rapid technological change, acceptance of new products, obsolescence, and value structure shift; product differentiation; unpredictable growth, government action, and competitive position.
C. Complexity
1. Increases with the number of sectors affecting the organization.
2. Four determinants.
a. Number of elements.
b. Their attributes.
c. Number of interactions.
d. Degree of organization among them.
D. Uncertainty
1. Considered by some the dominant dimension of a turbulent environment.
2. Renders decision making difficult.
3. Can be reduced through information.
4. Changes in the environment may require changes in the organizational structure.
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