Organisation Environmental Uncertainty

Organisational Environment Definition: The organisational environment is technically anything which is external to an organisation and can affect it in anyway, causing the organisation to react to this change. Fro example if a competitor lowers their prices, then an organisation in the same market may have to react by also lowering its prices, or saying that they have a better quality product which could help brand image and in turn sales, more than selling for cheaper. Organisational Environment Uncertainty Definition: The organisational environment can be very uncertain, with many factors affecting the way an organisational will have to cope and react to what is around them. The uncertainty which organisations have to deal with come mainly from the sectors in which that specific organisation will have to deal with the most,t his is because these will be the areas where the quickest changes will have to be made, with sectors where interaction isn’t as common an organisation doesn’t need to spend as much time on making sure that it is up-to-date with that sector, it just needs to unsure that whenever it does interact, that it is. From this we can see that organisations should focus on the Task Environments. To analyse these Task Environments, and to some extent the General Environments we can use three main techniques, which are the following; Change Complexity Need for Resources The whole point of uncertainty is that organisations need to be able to cope with it so that their business can be successful. But the problem here is that uncertainty means that there isn’t enough information for businesses to be sure on what is...

Organisational Environment and Culture

Organisational Environment Definition: The organisational environment is technically anything which is external to an organisation and can affect it in anyway, causing the organisation to react to this change. Fro example if a competitor lowers their prices, then an organisation in the same market may have to react by also lowering its prices, or saying that they have a better quality product which could help brand image and in turn sales, more than selling for cheaper. Organisational Culture Definition: Cultures in organisation is defined by how the organisation is run, how the personalities within the organisation interact with each other and also how the structure of the company is set out. Stable Environments From research it has been found that companies in more stable, simple environments have more standard, formalised cultures which are lead in a central way, not allowing much innovation or out-of-the-box thinking. This is most likely to do with the fact that their isn’t much to change all the time and therefore employees are expected to just get on with their job. Complex Environments This is in contrast to complex, unstable environments, where the culture is more likely to be informal, free-flowing and adaptable, as this leads to innovations, ideas to make change and ideas to help come back when a competitor, or another sector, has made a change. Key Learning Points How would you Define the Organisational Environment? How would you Define Organisational...

Organisational Environment and Resources

Organisational Environment Definition: The organisational environment is technically anything which is external to an organisation and can affect it in anyway, causing the organisation to react to this change. Fro example if a competitor lowers their prices, then an organisation in the same market may have to react by also lowering its prices, or saying that they have a better quality product which could help brand image and in turn sales, more than selling for cheaper. Organisational Resources: The assets that are by an organisation for the production process. This includes human, monetary, raw materials and money. Another aspect which makes interaction with the environment vital is the resources it provides organisation with. The environment provides us with financial support, raw materials and other important aspect which help us succeed, such as people to become employees, help and ideas. All of this leads to dependency on resources (Resource Dependency), however this also leads to organisations trying their hardest to take control of these resources so that they no longer have to rely upon them. This is fro example making more profit, so they rely less on banks for finance, buying an oil rig, so that they don’t need to go through suppliers to acquire the oil and therefore they don’t risk not being supplied. Another way to try and make dependencies less it so being partnerships and agreements with other organisations, such as outsourcing some parts of the business to other organisations. This will reduce the cost, but may lead to poorer quality, slower production, and many other problems. Key Learning Points Define the Organizational Environment? Define Resources? What are the Four...

The Organisational Domain

The Organisational Domain Definition: The organisations chosen field of action, the part of the environment which they choose to be vital to their company, so if that part changes, they must react. It is the area which the organisation will sell its products and services, in a way their niche (even though it may not be that small). It is said that there is ten different sectors which make up the environment for an organisation, each of which affect different organisations in different ways. These are shown below; Industry Raw Materials Human Resources Financial Resources Market Technology Economic Conditions Government Sociocultural International A good way to remember these is to make an anagram, such as ‘FISH M’ TIGER’  diagram which shows these off quite well is the following; The above sectors are known as the Task Environments and General Environments, depending on how that certain sector affects the organisation in question. Task Environments These are sectors which an organisation will interact with directly and therefore have a direct impact on the company itself. This includes the sectors; Industry Raw Materials Market Sectors Human Resource International Sectors General Environment These are sectors which an organisation will interact with indirectly, not directly every day, but it will indirectly influence the firm. The sectors which are included are the following; Government Sociocultural Economic Conditions Technology Financial Resources Sector More on This Subject To delve in deeper to this topic we recommend the following articles from MyHRMBook.com; An Organisation’s Environment and the Uncertainty this Brings The Culture Created due to an Organisation’s Environment The Resources Available due to an Organisation’s Environment We also suggest...

Environment

Environment Definition: The organisational environment is technically anything which is external to an organisation and can affect it in anyway, causing the organisation to react to this change. Fro example if a competitor lowers their prices, then an organisation in the same market may have to react by also lowering its prices, or saying that they have a better quality product which could help brand image and in turn sales, more than selling for cheaper. As stated above, the environment an organisation is in can be anything which affects it externally, therefore we can build up an environment around an organisation by determining what that organisation does, how it does it, what it needs to do it and many more things like this. Over the years organisations have had to worry about their environment more and more, mainly due to the expansion of international borders. Originally a company, say in Greece, would have only had to worry about competitors in their own countries, after they joined the European Union then this business boundary would have expanded to the whole of Europe, and in turn American as they gain more global appeal. Although this has made concentrating on the environment even more vital, it had also created lots more opportunities, many of which don’t really fit into this section, but some will, such as more opportunity to join up with companies of the same nature in different countries, which will help take on the global market without having to spend as much money on market research etc. The Organisational Domain Organisational Environment and Culture Organisation Environmental Uncertainty Organisational Resources Key...