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...

HRM Theories

Human Resource Management basis itself an a variety of different of theories, some of these are shown below: Culture Changing Culture over Time Four Main Cultures Four Principles of Culture Activity Person Culture Power Culture Role Culture Task Culture Two Cultures Theory What Influences the Business Culture? Environment The Organisational Domain Leadership Management Interactive Leadership Management Leadership Behaviours Leadership Powers and Influences Leadership Styles Leadership Theories Contingency Theory Level 5 Leadership Theory (Jim Collins) Path-Goal Theory Situational Theory The Leadership Grid Leadership Traits Types of Leader What the Difference Between Leadership and Management?...

Human Resource Management

Human Resource Management Definition: HRM is part of an organisation, known as a function, that is implemented to manage employees and make sure they are working to maximum efficiency and effectiveness, whilst also staying within internal and external policies and rules. The HR department in a large company often dictates what kind of culture emerges within an organisation. Another part of an Organisation is the Human Resource Management department (HRM). HRM covers a lot of ground, and on this website we will go into detail about a great deal of this. Many people think that Human Resource Management should be an after-matter, thinking that a good product and business plan is first and most important. However, without having a good set-up within the business, a good team behind you, then you aren’t likely to go far. As mentioned in the definition, the HR department often dictates what kind of culture is implemented or emerges within an organisation, therefore to achieve any corporate objectives, the HR department needs to be in line with what the people at the top of the company want. Within My HRM Book, you will find information on how HR affects a business and what can be done to change the culture, employee motivation and the effectiveness of the business as a whole. As well as this we will look at the wider context of Human Resource Management, how the department and subject fits in within the environment of an organisation and how this environment affects all of the areas of HR, which are shown below the image. More on This Subject To delve in deeper to...