The External Environment and Organizational Culture Chapter 2 I. Systems Theory of the Organization a. Figure b. Open systems – organizations that are affected by and that affect their environment c. Inputs – goods and services organizations take in and use to create products or services i. Raw materials, services, equipment, capital, information d. Outputs – products and services organizations create ii. Products, services e. External environment – all relevant forces outside a firm’s boundaries such as competitors, customers, the government, and the economy iii. Competitive environment – immediate environment surrounding a firm 1. Suppliers, customers, …show more content…
Scenario Development – narrative that describes a particular set of future conditions xxi. Breaks down environmental factors into unattractive and attractive points v. Forecasting – method for predicting how variables will change the future w. Benchmarking – process of comparing organization’s practices and technologies with those of other companies xxii. Identifies the best-in-class performance by a company in a given area and then compares firm’s processes to it V. Responding to the Environment x. Adapting to the environment: Changing yourself xxiii. Empowerment – process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization xxiv. Buffering – creating supplies of excess resources in case of unpredictable needs xxv. Smoothing – leveling normal fluctuations at the boundaries of the environment xxvi. Flexible processes – methods for adapting the technical core to changes in the environment 6. Example: one size/design fits all y. Influencing your Environment xxvii. Independent strategies – strategies that an organization acting on its own uses to change some aspect of its current environment 7. Example: aggressive strategies xxviii. Comparative strategies –
In the paradigm of management, empowerment is viewed as losing authority and control over people and resources. Generally, people resent being driven, controlled and being seen as part of company equipment. This breeds apathy in employees towards the organisation’s intents in the market place and destroys accountability.
In many ways, empowerment embodies principles effective managers and leaders have practiced for years. Two new driving forces in business, increased diversity and high-speed change, magnify the need for empowerment. Empowering people is now indispensable for effective personal productivity and maximum team success.
Employee empowerment is defined as giving employees a degree of autonomy and responsibility for decision-making. The benefits are
When manipulating a business’s strategy, it is important to focus on the external factors in the environment. An external analysis is where a business conducts environmental scanning that present a company with the key external forces influencing the organization. The facets of external forces examined are the business environment, remote environment, or the competitive environment. A business environment is all of the external factors in the general environment that a firm cannot control, but can affect their strategy. The remote environment is the forces that affect most firms. Lastly, a competitive environment is the firm’s specific industry and its entirety. The external analysis is pertinent to a company called Dick’s Drive- In; without it, Dick’s would not be a thriving popular business today.
Empowerment is when individuals are given greater control over decisions and actions that will affect their health. Empowerment is important when working in partnership within health and social care settings, as it can allow honest relationships to develop between service users and
18) The ____________ consists of all the organizations that acquire goods and services used in the production of other products or
The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,
The information gained from such a comparison allows firms to determine how well they perform in comparison with the “best” and, in turn, develop new and better strategies to work towards making improvements or adopting certain best practices. Benchmarking is usually an ongoing process in which companies continuously seek the improvement of their practices. (Debitoor, 2017)
Employee empowerment is to give workers a greater voice in decisions about work-related matters. Their decision-making authority can range from offering suggestions to exercising veto power over management decisions. The range of decisions could go as far as: how jobs are to be performed, working conditions, company policies, work hours, peer review, and how supervisors are evaluated.
Another component of the external environment is the socio-cultural dimension, which in Nucor steel’s case focuses on relationships, computer programs, as well
Empowerment is an issue that is imperative to the change process. We touched on the idea of empowerment while exploring power, and politics in the workplace. Empowerment is important in regards to The Heart Of
Employee empowerment can be described as giving employees' accountability and ability to make choices about their work without managerial authorization. Good managers are expected to
External environment refers to external aspects of the surroundings of business enterprise, which have influence on the functioning of business. The external environment can provide both facilitating and inhibiting influences on organizational performance. Key dimension of the external environment principally consists of a micro environment and a macro environment.
Empowerment is an important tool for progression and FWD needs to exercise it often when expecting employees to work together towards a global objective. Empowerment can be defined as providing employees the chance to exercise autonomy in making decisions (Vogt, 1997), which is rarely implemented at FWD.
An analysis of the external environment includes the factors in a business’s external environment about a business's industry, competition, and political and social environments, and affects the firm’s strategy (Aaker, 2001).