The document discusses organizational environment and its impact on organizations. Organizational environment refers to the set of forces surrounding an organization that can affect its operations and access to resources. These forces include customers, suppliers, competitors, government regulations, technology, the economy, and more. Researchers have found that organizations adapt their structures based on the complexity of their environment - stable environments suit mechanistic structures while unstable environments require more organic structures. Managers can enact strategies to buffer or bridge the organization from its task environment and seek legitimacy from the institutional environment.

1. THE ORGANISATION
ENVIRONMENT

2. WHAT IS ORGANISATIONAL
ENVIRONMENT?
 THE SET OF FORCES
SURROUNDING AN ORGANISATION
THAT HAVE THE POTENTIAL TO
AFFECT THE WAY IT OPERATES
AND ITS ACCESS TO SCARCE
RESOURCES

3. SPECIFIC FORCES
 CUSTOMERS
 DISTRIBUTION CHAIN
 SUPPLIERS
 COMPETITORS
 UNION
 GOVT.

4. GENERAL FORCES
 TECHNOLOGY
 ECONOMY
 ENVIRONMENT
 DEMOGRAPHY
 POLITY
 GLOBALISATION

5. ENVIRONMENTAL
DIMENSIONS
 SIMPLE – STABLE - RICH
 Few products/ services
 Limited customers/ suppliers/ competitors
 Minimal need for sophisticated knowledge
 COMPLEX - DYNAMIC - POOR
 Many products/ services
 Many customers/ suppliers/ competitors
 High need for sophisticated knowledge

6. CONTINGENCY THEORY
LAWRENCE AND LORSCH (1967)
 Plastics, Food And Container Industry
 Differentiation
 Degree to which individuals in different depts. vary
in their goals and value orientations
 Integration
 Degree to which members of various depts.
achieve unity of effort

7. LAWRENCE AND LORSCH
(CONTD.)
 Depts. Align with their Specific
Environment
 Functional structure
 Diverse Environment – Differentiated
Orgn. Structure
 Successful Firms – Higher Degree of
Integration
 Liaison roles

8. BURNS AND STALKER
(1961)
 UNSTABLE-CHANGING ENVN.
 Organic Structure
 STABLE ENVN.
 Mechanistic Structure

9. CONCEPTUALISING ENVN.
 Sources of Uncertainty
 Heterogeneity
 Volatility
 Threat
 Interconnectedness
 Lack of coordination

10. CONCEPTUALISING ENVN.
(Contd.)
 Sources of Dependence
 Scarcity
 Concentration
 Coordination

11. MANAGING TASK ENVN.
 BUFFERING STRATEGIES
 Intra-Organizational Techniques Aimed at
Reducing Uncertainty for the Technical
Core
 Coding
 Stockpiling
 Leveling
 Forecasting
 Growth

12. MANAGING TASK ENVN.
(contd.)
 BRIDGING STRATEGIES
 Response to Increasing Organizational
Interdependence
 Bargaining
 Contracting
 Co-optation
 Joint Ventures
 Mergers
 Associations

13. MANAGING INSTITUTIONAL
ENVN.
 SOURCE OF LEGITIMACY
 INSTITUTIONAL BRIDGING STRATEGIES
 Structural Conformity
 Procedural Conformity
 Personnel Conformity
 Legitimated Vocabularies
 LOOSELY COUPLED SYSTEMS
 Rational Myths

14. ENACTED ENVIRONMENT
 OBJECTIVE ENVIRONMENT
 DIFFUSED ENTITY
 MANAGERS ‘PERCEIVE’ ENVN.
 ORGNS. ENACT ENVN. (Weick)
 Past Experience
 Power to Manipulate & Control
 Managers Exercise Strategic Choice

15. ENVN. & ORGN.
STRUCTURE
 MAPPING ENVIRONMENTAL COMPLEXITY
 INTEGRATION (LAWRENCE AND LORSCH)
 LOOSE COUPLING
 MECHANISTIC VS. ORGANIC
STRUCTURES
 ENACT ENVN.
 GROWTH AND MERGERS
 EXERCISE STRATEGIC CHOICE
 ORGANISATIONS FORM THE
ENVIRONMENT FOR ORGANISTIONS