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  1. 1. The External Environment
  2. 2. Defining the External Environment <ul><li>External Environment </li></ul><ul><ul><li>Those factors and forces outside the organization that affect the organization’s performance. </li></ul></ul><ul><li>Components of the External Environment </li></ul><ul><ul><li>Specific environment: external forces that have a direct and immediate impact on the organization. </li></ul></ul><ul><ul><li>General environment: broad economic, socio-cultural, political/legal, demographic, technological, and global conditions that may affect the organization. </li></ul></ul>
  3. 4. Parameters of Managerial Discretion
  4. 5. Logistic Function Organisation
  5. 6. Implications of the Systems Approach <ul><li>Coordination of the organization’s parts is essential for proper functioning of the entire organization. </li></ul><ul><li>Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. </li></ul><ul><li>Organizations are not self-contained and, therefore, must adapt to changes in their external environment. </li></ul>
  6. 7. The Contingency Approach <ul><li>Contingency Approach Defined </li></ul><ul><ul><li>Also sometimes called the situational approach. </li></ul></ul><ul><ul><li>There is no one universally applicable set of management principles (rules) by which to manage organizations. </li></ul></ul><ul><ul><li>Organizations are individually different, face different situations (contingency variables), and require different ways of managing. </li></ul></ul>
  7. 8. Popular Contingency Variables <ul><li>Organization size </li></ul><ul><ul><li>As size increases, so do the problems of coordination. </li></ul></ul><ul><li>Routineness of task technology </li></ul><ul><ul><li>Routine technologies require organizational structures, leadership styles, and control systems that differ from those required by customized or nonroutine technologies . </li></ul></ul><ul><li>Environmental uncertainty </li></ul><ul><ul><li>What works best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. </li></ul></ul><ul><li>Individual differences </li></ul><ul><ul><li>Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and expectations. </li></ul></ul>
  8. 9. Current Trends and Issues <ul><li>Globalization </li></ul><ul><li>Ethics </li></ul><ul><li>Workforce Diversity </li></ul><ul><li>Entrepreneurship </li></ul><ul><li>E-business </li></ul><ul><li>Knowledge Management </li></ul><ul><li>Learning Organizations </li></ul><ul><li>Quality Management </li></ul>
  9. 10. How Organizations Go Global
  10. 11. Current Trends and Issues (cont’d) <ul><li>Globalization </li></ul><ul><ul><li>Management in international organizations </li></ul></ul><ul><ul><li>Political and cultural challenges of operating in a global market </li></ul></ul><ul><ul><ul><li>Working with people from different cultures </li></ul></ul></ul><ul><ul><ul><li>Coping with anticapitalist backlash </li></ul></ul></ul><ul><ul><ul><li>Movement of jobs to countries with low-cost labor </li></ul></ul></ul><ul><li>Ethics </li></ul><ul><ul><li>Increased emphasis on ethics education in college curriculums </li></ul></ul><ul><ul><li>Increased creation and use of codes of ethics by businesses </li></ul></ul>
  11. 12. Categories of E-Business Involvement
  12. 13. Distribution and Technology Organisation
  13. 14. Dimensions of Organizational Culture
  14. 15. Spirituality and Organizational Culture <ul><li>Workplace Spirituality </li></ul><ul><ul><li>The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community. </li></ul></ul><ul><li>Characteristics of a Spiritual Organization </li></ul><ul><ul><li>Strong sense of purpose </li></ul></ul><ul><ul><li>Focus on individual development </li></ul></ul><ul><ul><li>Trust and openness </li></ul></ul><ul><ul><li>Employee empowerment </li></ul></ul><ul><ul><li>Toleration of employees’ expression </li></ul></ul>
  15. 16. Benefits of Spirituality <ul><li>Improved employee productivity </li></ul><ul><li>Reduction of employee turnover </li></ul><ul><li>Stronger organizational performance </li></ul><ul><li>Increased creativity </li></ul><ul><li>Increased employee satisfaction </li></ul><ul><li>Increased team performance </li></ul><ul><li>Increased organizational performance </li></ul>