Business Essay

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ORGANIZATION AND ENVIRONMENT Chapter 3 ByAbhyuday Shah Figure 3.1 The Organization in its Environment ENVIRONMENT ORG Inputs Outputs Modernist Levels of the Environment Interorganizational network General environment International environment Organizational Environment Modernist theory, the environment … lies outside the boundary of the organization. provides the organization with resources and absorbs its products and services. imposes constraints upon and demands adaptation from the organization. Organizational Environment Symbolic-Interpretivists suggest environments … are social constructions. organizational members construct environmental features they think are significant. different organizations construct their environments differently based on management’s interpretation. Organizational Environment Postmodernists see environment as… fragmented boundaryless image-driven simulacra NETWORK Unions Regulatory Agencies ORG Customers Partners Suppliers Special interests Figure 3.2 Competitors Managing the Environment Buffering Protecting the internal organizational environment from environmental shocks. Example: Material, labour, or capital shortages. Managing the Environment Boundary Spanning – Environmental monitoring activities. – Representing the organizational interests to the environment. • • • • Public relations Advertising Sales Recruiting efforts Stakeholder theory Organizations operate under a social contract that guarantees certain rights to those who have a stake in the organization’s activities or outcomes. Those attending to stakeholder demands will be more successful. Interorganizational Network Stakeholders: Any actor that affects or is affected by the organization. Network actors: Investors, competitors, employees, media, suppliers,

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