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Organizations and multi environments
3 Jun 2008 Author: Daryoosh In: Management, Organization and the environment, OrganizationsIn this section, there are two parts that useful in every organizations. In next posts, I’ll describe it more. So… Join to this and leave your comment to discussion!
A. The multiple environments of multi divisional firms may make it impossible to state exactly what the business of the firm is.
B. Even the environments of companies in the same industry may be significantly different because of technology, geography, or other factors.
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The organization and environmental states
3 Jun 2008 Author: Daryoosh In: Management, Organization and the environment, OrganizationsA. Definition: four states are defined by integrating the change, complexity, and uncertainty dimensions.
B. Low perceived uncertainty and a simple, stable environment: few technological changes and little product differentiation.
C. Moderately low perceived uncertainty: more complexity in the environment, lines of competition blurred, some product differentiation, and change is slow, lack of homogeneity.
D. Moderately high perceived uncertainty: simple firm in rapidly changing environment.
E. High perceived uncertainty: rapid change and a complex, unstable environment.
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The organization and the environmental dimensions
1 Jun 2008 Author: Daryoosh In: Management, Organization and the environment, OrganizationsA. 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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