Organizations and Environments

tubacitychiropractorGestion

8 nov. 2013 (il y a 7 années et 10 mois)

207 vue(s)

Organizations and Environments

Definitions of Organizations


Social entity, goal directed, deliberately
structured, identifiable boundaries (Daft)


Response to and means of creating value
that satisfies human needs. Embodies
collective knowledge, values, and vision
(Jones)


Integration of specialized knowledges into a
common task (Drucker)

Organizations


Human creations whose operations and
products are results of the ways we govern
them and of the social, institutional, and
political structures within which they
operate (i.e., their environments)


Organizations are both products of these
structures and de
-
stabilizers of these
structures

Trends and Tensions in
Contemporary Organizations


Small and flexible vs. large and vertically
integrated


Technology as work saver vs. work producer


Networks vs. hierarchies


Knowledge workers vs. administrators as powerful
organizational members


Manufacturing vs. service


Labor shortages vs. labor surpluses


Trends and Tensions in
Contemporary Organizations


Production of high vs. low wage service
jobs


Job as package of specific duties in specific
time period vs. job as flexible in duties,
time, and space


Need for organizational learning vs. poor
memory capacity due to downsizing,
merger, and acquisition activity

Trends and Tensions in
Contemporary Organizations


Globalism vs. nationalism vs. environmentalism


Establishment of strong organizational cultural
values vs. appreciating diversity


Multigenerational workplaces: Veterans vs.
boomers vs. GenXers, vs. Generation Y vs.
“millennial” generation


New technologies vs. “old” human values (e.g.,
biotechnology, wireless technology)

Essential Features of Organizations


Open system: input, transformation, output



Subsystems: boundary spanning, production,
maintenance, adaptation, management



Domains: range of products and services
produced for serving markets and customers



Environmental Transactions: dealing with factors
outside the organizational boundaries

Open Systems View of Organization

Input

Output

Raw
Materials



Resources

Transformation

Products




Services

ENVIRONMENT

Organization

Subsystems

Boundary

Spanning

Boundary

Spanning

Production

Maintenance

Adaptation

Management

Organization
-
Environment Interface


General factors


Economic


International


Political/legal


Technology


Social/demographic


Cultural


Physical/natural
resources



Task (specific) factors


Customers


Suppliers


Distributors


Regulatory agencies


Competitors


Unions


Partners


Special Interests


Environmental Uncertainty


Stability
-
Change
Dimension


How fast and
unpredictably elements
change


Universities vs.
telecommunications



Determines how
often you need to
collect information


Simple
-
Complex
Dimension


Number of elements
and their similarity


Family restaurant vs.
automobile
manufacturer



Determines what
information you need


Perceived Environmental
Uncertainty


Simple vs. Complex Elements


Stable vs. Dynamic Elements


Richness vs. Poorness of Elements



More uncertainty results when
organization has to deal with
complex, changing, and/or poor
quality elements.

Environmental Uncertainty

Rate of Change

Complexity

Low

High

Low

High

Low


Uncertainty

Moderate

Uncertainty

Moderate

Uncertainty


High

Uncertainty


(Information known
and available)

(Constantly need
new information)


(Information

overload)


(Information needs


unknown)


Theories of Organization
-
Environment Relationships


Contingency Theory


Resource Dependence


Strategic Choice


Population Ecology


Institutional Theory


Transaction Cost Theory

Contingency Theory


Most effective way to organize is contingent on
complexity and change in environment


Stable environments:
Mechanistic structures
(specialization, formality, hierarchy)


Changing environments:
Organic structures

(less specialization, informality, lateral relations)

Resource Dependence


Organizations obtain scarce and
valued resources from
environments


Desire to control these resources
to minimize dependencies


Processes and transactions used
to obtain resources develop
dependencies


Balancing act of maintaining
autonomy and recognizing
dependencies

Strategic choice



Managers perceive environments


Make strategy and design structure


Re
-
strategize when changes are
perceived


Managers
enact
environments through
their decision
-
making choices


Since managers perceive differently,
they bring organizations in different
directions


Example: Sears vs. Montgomery
Ward


Population Ecology


Focus is on whole population of
organizations (e.g., gasoline
stations in Canada; wine
industry in California)


Natural selection processes:

Variation

Selection


Retention


Unsuccessful organizational
forms die out


Environmental determinism


Institutional Theory



Societal institutions are powerful forces
for ensuring control and order


In responding to institutional pressures,
organizations develop isomorphic (similar)
strategies, structures, and systems


Normative, coercive, and mimetic forces
make “all organizations look the same”


Goal is to obtain social legitimacy


Example: banks, universities, discount
stores

Transaction Cost Theory



Organizations try to reduce monitoring,
negotiating, and governing exchanges with
environmental elements (transaction costs)


Environmental uncertainty, opportunism,
bounded rationality, small numbers
bargaining, asset specificity, and risk levels
increase transaction costs


Transaction and bureaucratic costs balanced

What specific adaptation devices
do organizations use?


Structural Responses


Develop new positions or units


Boundary
-
spanning activities


Buffering roles and units


Planning Groups


Forecasting


Management Information
Systems

Specific Adaptation Devices

Inter
-
organizational Linkages:



Symbiotic interdependencies


Benefit both organizations



Competitive interdependencies


Direct competition for scarce
resources

Symbiotic Interdependencies


Good reputation


Cooptation


Interlocking
directorates


Strategic alliances


Long
-
term
Contracts


Equity ownership in
other firms




Joint ventures


Mergers,
acquisitions, and
takeovers


Licensing


Consortia


Marketing or
distribution
agreements


Franchising

Competitive Interdependencies


Collusions


Signaling


Cartels


Trade associations


Regulatory bodies


Competitive strategic
alliances


Networking

How do we assess if an organization
is effective in its environment?


Goals approach


Official vs. operative goals


Achieving organizational goals is effectiveness


Systems resource approach


Obtaining scarce and valued inputs


Measured by quality and costs of inputs; stock price
and market share


Example: Software firm hires the best engineers with
competitive compensation

What is organizational
effectiveness?


Internal Systems Approach


Innovation and quick response to changes


Measured by decision making time, product
innovation rate, time to get new products to
market, reduction of conflict and motivation
problems


Example: 3M: 25% of sales must come from
products less than 5 years old

What is organizational
effectiveness?


Technical efficiency approach


Ability to convert skills and resources into
goods and services efficiently


Measured by rate of reduction of defects,
reduction of product costs and delivery times,
increases in customer service and product
quality


Example: TQM processes at Stanley
Engineering

What is organizational
effectiveness?


Stakeholder Approach


Stakeholders are any individuals, groups, or
organizations that have an interest in the firm’s
activities and ultimate survival


Internal stakeholders: owners or shareholders,
employees, and managers


External stakeholders: customers, suppliers,
government, unions, local community, general
public, natural environment

Managing Stakeholders


Inducements and contributions
balance


Inducements are what the firm
provides for stakeholder


Contributions are what the
stakeholder provides for the firm


Firms would like to provide as
little inducement as possible for
adequate levels of stakeholder
contribution and vice versa

Managing Stakeholders


Assess importance of
stakeholders


Power, legitimate rights, and
urgency



Assess potential for threat vs.
potential for cooperation


Opportunity, capacity, and
willingness



Determine appropriate
strategies for managing the
stakeholder



Potential for Threat

High

High

Low

Low

Potential for


Cooperation

Supportive

Stakeholder:


Get Involvement

Marginal

Stakeholder:


Monitor

Non
-
supportive

Stakeholder:


Defensive strategies

Mixed Blessing

Stakeholder:


Collaborative

strategies

Managing Stakeholders


Managing multiple goals of stakeholders


setting priorities or preference ordering


sequential attention


bargaining and compromise


satisficing



At least minimal satisfaction of all current
stakeholders is organizational effectiveness.

Total Responsibility
Management Systems


Focus is on the triple bottom line:



Economic (profits)


Social (people)


Environmental (place)


TRM can be significant source of competitive
advantage for firms who take the lead in these
initiatives

Pressures for TRM


Primary stakeholders: owners, employees,
customers, and suppliers


Secondary stakeholders: NGO’s, activists,
communities, and governments


Social and institutional pressures and trends:
“best of” rankings and awards; emerging global
standards (e.g., UN’s Global Compact); and
reporting/accountability initiatives (e.g., GRI or
SA 8000 or AA1000)

Three Processes in the TRM
Approach


Institutionalizing

a vision and set of values
regarding responsible practice through the
enterprise (inspiration)


Integration
of the responsibility into practice
through strategy, management systems, and
human resource capacity


Improvement and innovation

through
measurement, feedback systems, and learning and
remediation