ManagementManagementSession 3Session 3

An Organisation’s Internal & An Organisation’s Internal & External EnvironmentExternal Environment

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Learning Objectives Learning Objectives 11 。。 Discuss the diversity and ambiguity of the Discuss the diversity and ambiguity of the

environment in which managers operate.(environment in which managers operate.( 管理者管理者管理中会遇到哪些的环境？）管理中会遇到哪些的环境？）

22 。。 Understand two types of externalUnderstand two types of externalenvironment.(2.1environment.(2.1 组织有哪两种外部环境组织有哪两种外部环境 ?2.2?2.2 请具请具体说明体说明 STEPI analysisSTEPI analysis ； ； Task Environment Task Environment – 5 – 5 elementselements 。。 2.32.3 有哪两种分析组织与环境的方法？有哪两种分析组织与环境的方法？ 2.42.4 环环境有哪四种特征？境有哪四种特征？ 2.52.5 管理环境有哪三种方法？管理环境有哪三种方法？ )) 。。

33 。。 Understand the organisation’s internal Understand the organisation’s internal environment.environment. （（ 3.13.1 举例说明什么是内部环境？举例说明什么是内部环境？3.23.2 什么是组织文化，会受什么因素影响？什么是组织文化，会受什么因素影响？ 3.33.3 如如何划分文化有类型？何划分文化有类型？ 3.43.4 领导者是如何影响文化领导者是如何影响文化的？）的？）

44 。。 Analyse an organisation using SWOTAnalyse an organisation using SWOT （举例（举例说明什么是说明什么是 SWOTSWOT 分析）分析）

How do you think or behave during a time of uncertainty – answer mostly true / mostly false:

1.Enjoy hearing about new ideas even when working to a deadline

2.Welcome unusual viewpoints from others even if we are working under pressure

3.Make it a priority to attend company & industry events 4.Specifically encourage others to express opposing ideas &

arguments 5.Ask ‘dumb’ questions 6.Always offer comments on meaning of data or issues 7.Express a controversial opinion to your boss & peers 8.Suggest ways of improving my & others’ way of doing

thingsSamson, Catley, Cathro, Daft, 2012

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Organisation’s Internal & External Organisation’s Internal & External EnvironmentEnvironment

Managers are faced with diversity & ambiguity in Managers are faced with diversity & ambiguity in the environment in which they operatethe environment in which they operate External EnvironmentExternal Environment

• Mega-environmentMega-environment• Task environmentTask environment

Internal EnvironmentInternal Environment• Organisational cultureOrganisational culture

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External EnvironmentExternal Environment

Being aware of (Being aware of ( 知道）知道） trends & variables in trends & variables in external environment, that have potential to external environment, that have potential to impact on organisation, is critical for managers impact on organisation, is critical for managers concerned for future of their organisation.concerned for future of their organisation.

These factors must be taken into account in These factors must be taken into account in strategic & business planning. strategic & business planning.

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External EnvironmentExternal Environment

‘‘Major forces outside organisation with Major forces outside organisation with potential to significantly influence likely potential to significantly influence likely success of a product or service’. success of a product or service’.

External environment is made up of:External environment is made up of:Mega-environmentMega-environmentBroad conditions & trends in societies in Broad conditions & trends in societies in which an organisation operates.which an organisation operates.

Task environmentTask environmentSpecific outside elements with which an Specific outside elements with which an organisation interacts in course of organisation interacts in course of conducting its business.conducting its business.

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Mega-environment – STEPIMega-environment – STEPI

Broad conditions & trends in societies in Broad conditions & trends in societies in which an organisation operates.which an organisation operates.

SSocio-culture elementocio-culture element TTechnological elementechnological element EEconomic elementconomic element PPolitical-legal elementolitical-legal element IInternational elementnternational element

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STEPI analysisSTEPI analysis Socio-cultural:Socio-cultural:

Demographic factorsDemographic factors

Characteristics of population: geographic area, Characteristics of population: geographic area, age, gender, income, education, stage in family age, gender, income, education, stage in family lifecyclelifecycle

Psychographic factorsPsychographic factors

Peoples’ attitudes, values, norms, beliefs, Peoples’ attitudes, values, norms, beliefs, lifestyle & behaviours – these factors / trends lifestyle & behaviours – these factors / trends particularly useful for organisations selling goods particularly useful for organisations selling goods to consumer marketto consumer market

STEPI analysisSTEPI analysis

Technological:Technological:

Factors / trends involving current ‘state of knowledge’ Factors / trends involving current ‘state of knowledge’ regarding production of products / servicesregarding production of products / services

EconomicEconomic::

Trends / variable associated with system of Trends / variable associated with system of producing, distributing & consuming wealth – at producing, distributing & consuming wealth – at national & local levelsnational & local levels Interest rates, exchange rates, recession Interest rates, exchange rates, recession （（经济衰经济衰

退）退） or ‘boom’ or ‘boom’ （（繁荣）繁荣） period, level of period, level of employmentemployment

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STEPI analysisSTEPI analysis

Political & legal:Political & legal:Laws, regulations & governmental systems within Laws, regulations & governmental systems within which organisations must function – & political which organisations must function – & political interest groups that affect it. Managers should interest groups that affect it. Managers should consider law changes, government changes, consider law changes, government changes, pressure groups at national & local levelpressure groups at national & local level

International:International:Developments in countries outside an Developments in countries outside an organisation’s home country with potential to organisation’s home country with potential to influence the organisationinfluence the organisation

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Task EnvironmentTask Environment

Specific outside elements with which an Specific outside elements with which an organisation interacts in course of conducting organisation interacts in course of conducting its businessits business

Competitors

Customers/clients

SuppliersThe employment market

Government and regulators

The

Organisation

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Task Environment Task Environment – 5 elements:– 5 elements:1.1. Customer & clientsCustomer & clients

- Individuals & organisations purchasing an Individuals & organisations purchasing an organisation’s product / servicesorganisation’s product / services

2.2. CompetitorsCompetitors

-- Other organisations offering / high potential to offer Other organisations offering / high potential to offer rival products / servicesrival products / services

3.3. SuppliersSuppliers

-- Of resources organisation needs to operateOf resources organisation needs to operate

4.4. Labour supplyLabour supply

-- People potentially employable by organisationPeople potentially employable by organisation

5.5. Government agenciesGovernment agencies

- - Providing services & monitoring compliance Providing services & monitoring compliance

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Analysing environmental conditionsAnalysing environmental conditions

Two Views of organisation / environmental Two Views of organisation / environmental relationshiprelationship

1.1. Population ecology modelPopulation ecology model Argues that environmental factors cause Argues that environmental factors cause

organisations with appropriate characteristics organisations with appropriate characteristics to survive & others failto survive & others fail

2.2. Resource dependence modelResource dependence model Sees organisations as being dependent on Sees organisations as being dependent on

environment for resources, arguing they try to environment for resources, arguing they try to manipulate environment to reduce dependencemanipulate environment to reduce dependence

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Analysing environmental conditionsAnalysing environmental conditions

Four characteristics of the environment:Four characteristics of the environment:1.1. Environmental uncertaintyEnvironmental uncertainty

-- An organisation’s future environment can’t be An organisation’s future environment can’t be accurately predictedaccurately predicted

2.2. ComplexityComplexity-- Number of elements in an organisation's Number of elements in an organisation's

environment & their degree of similarityenvironment & their degree of similarity3.3. DynamismDynamism

-- Rate & predictability of change in elements of an Rate & predictability of change in elements of an organisation’s environment – stable vs unstable?organisation’s environment – stable vs unstable?

4.4. Environmental bountyEnvironmental bounty - Extent to which environment can support - Extent to which environment can support sustained growth & stability – rich vs leansustained growth & stability – rich vs lean （贫（贫瘠）瘠） ??

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Managing environmental elementsManaging environmental elementsThree approaches:Three approaches:AdaptationAdaptation

Changing internal operations & activities to make Changing internal operations & activities to make organisation & its environment more compatible: buffering, organisation & its environment more compatible: buffering, smoothing, forecasting, rationingsmoothing, forecasting, rationing （配给）（配给）

Favourable influenceFavourable influenceTrying to alterTrying to alter （修改） （修改） environmental environmental

elements to make them more compatible elements to make them more compatible with organisation’s needs: promotion, with organisation’s needs: promotion, recruitingrecruiting （充实）（充实） , negotiate , negotiate （协商）（协商） contracts contracts

Domain shiftsDomain shifts （改变）（改变）Changing product / service mix to Changing product / service mix to

create favourable relationship – move create favourable relationship – move or diversify or diversify （进入新的商业领域）（进入新的商业领域）

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Managing environmental elementsManaging environmental elements

Adaption:Adaption: BufferingBuffering （（缓冲） 缓冲） – – StockpilingStockpiling （（贮存） 贮存）

inputs or outputs to overcome environmental inputs or outputs to overcome environmental variationsvariations

Smoothing – Acting to reduce impact of Smoothing – Acting to reduce impact of market fluctuations – discounts & salesmarket fluctuations – discounts & sales

Forecasting – Predicting important conditions Forecasting – Predicting important conditions & future events& future events

Rationing – Limiting access to high demand Rationing – Limiting access to high demand product / service product / service

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Managing environmental elementsManaging environmental elements

Favourability influence:Favourability influence: Advertising & public relations – environment Advertising & public relations – environment

can be influenced by promotional activitiescan be influenced by promotional activities Boundary spanning – Creating roles within Boundary spanning – Creating roles within

organisation to deal specifically with major organisation to deal specifically with major environmental elementsenvironmental elements

Recruiting – Selecting candidates who will be Recruiting – Selecting candidates who will be able to understand & interact with able to understand & interact with environmentenvironment

Negotiating contracts – Specific customer & Negotiating contracts – Specific customer & supplier agreements can create supplier agreements can create environmental favourabilityenvironmental favourability

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Managing environmental elementsManaging environmental elements

Favourability influence:Favourability influence: Co-opting – Getting right people with right Co-opting – Getting right people with right

skills to deal with environmentskills to deal with environment Strategic alliances – Co-operative Strategic alliances – Co-operative

partnershipspartnerships Trade associations – Organisations (or Trade associations – Organisations (or

individuals) with common business interestsindividuals) with common business interests Political activity – Influencing legislationPolitical activity – Influencing legislation

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Internal EnvironmentInternal Environment– Organisational culture– Organisational culture

Conditions & forces within organisationConditions & forces within organisation

– – over which organisation has control, e.g.over which organisation has control, e.g.

CultureCulture Marketing Marketing FinanceFinance Human ResourcesHuman Resources

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Organisational CultureOrganisational Culture

Values, beliefs, assumptions about appropriate Values, beliefs, assumptions about appropriate behaviour that members of an organisation sharebehaviour that members of an organisation share

‘‘the way we do things around here’the way we do things around here’ Influenced by:Influenced by:

• Founding members of organisationFounding members of organisation• Current management & other ‘heroes’ – their Current management & other ‘heroes’ – their

imagination & driveimagination & drive• Recruitment & reward systemsRecruitment & reward systems• Formal statements, procedures, physical Formal statements, procedures, physical

settingsetting• External environment External environment

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Indicators of organisation’s cultureIndicators of organisation’s culture

SymbolsSymbols （（标志，符号）标志，符号） – – object, act, event, object, act, event, words & slogans used within organisation that words & slogans used within organisation that convey meaningconvey meaning

StoriesStories – Based on actual events (good & bad), – Based on actual events (good & bad), may be elaborated to highlight intended valuemay be elaborated to highlight intended value

Rites Rites （（仪式）仪式） & ceremonies& ceremonies （（典礼）典礼） – – An An occasionoccasion （（场合） 场合） or event or event

Power of Organisation Culture

Culture serves two important functions: Creates internal unity Helps organisation adapt to external environment

Impact of culture depends on degree to which: Culture supports achievement of organisational

objectives Set of norms （标准，规范，准则） & values are

widely shared among staff These values are strongly held throughout

organisation

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Cultural TypesCultural Types

Strong vs weak culturesStrong vs weak cultures Strong – deeply rooted – key values & norms are

widely shared & strongly held by staff in org. Weak – shallow rooted – where there is lack of

agreement on these values Unhealthy culturesUnhealthy cultures

Highly politicised, hostileHighly politicised, hostile （（敌对）敌对） to change or to change or new ways of doing things, over-confident – due new ways of doing things, over-confident – due to past successto past success

Such organisations may lose sight of events in Such organisations may lose sight of events in their market & can face problems in dynamic their market & can face problems in dynamic environment environment

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How leaders influence cultural How leaders influence cultural changechange

Leadership can be criticalLeadership can be critical （（关键，决定性）关键，决定性） :: Typically, they Typically, they convinceconvince （（使确信）使确信）

members a crisis has occurred or is likely to members a crisis has occurred or is likely to occuroccur

Next they Next they communicatecommunicate （（成就）成就） vision of vision of a new direction & strategy – including a new direction & strategy – including cultural changescultural changes

Finally they Finally they motivatemotivate others to lead others to lead implementation of vision & implementation of vision & correspondingcorresponding （（对应） 对应） strategystrategy

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S.W.O.TS.W.O.T

Inside the Inside the OrganisationOrganisation ResourcesResources

& capabilities& capabilities

SStrengthstrengths

WWeaknesseseaknesses

Outside the Outside the OrganisationOrganisation ConditionsConditions

& trends& trends

OOpportunitiespportunities

TThreatshreats

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SWOT AnalysisSWOT Analysis

Inside the organisationInside the organisation• Strengths & Weakness within your group?Strengths & Weakness within your group?• SStrengthstrengths??• Eg: How many languages within group? What Eg: How many languages within group? What

age range do you have? What cultures are age range do you have? What cultures are represented? What resources do you have? represented? What resources do you have? What skills / experience do you have: What skills / experience do you have: technology, accounting, people, marketing, technology, accounting, people, marketing, relevant technical?relevant technical?

• Weaknesses?Weaknesses?• What is missing? What might you need to be What is missing? What might you need to be

successful?successful?

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SWOT AnalysisSWOT Analysis

Outside the organisation…Outside the organisation… What are theWhat are the opportunities? opportunities? What is happening outside your group that would What is happening outside your group that would

provide an opportunity for you as an individual or provide an opportunity for you as an individual or your ‘organisation’ to grow?your ‘organisation’ to grow?

What are theWhat are the threats? threats? What is happening outside your group that would What is happening outside your group that would

limit or stop you as an individual or your limit or stop you as an individual or your ‘organisation’ growing?‘organisation’ growing?

课后作业 选择一名管理者进行调查

Think of a specific job you’ve had. What is your perception of managers above you in that job.

For each statement, answer:

5 – Strongly agree

4 – Agree

3 – Neither agree or disagree

2 – Disagree

1 – Strongly disagree

Samson, Catley, Cathro, Daft, 2012

1. Good ideas get serious consideration from managers above me.

2. Managers above me were interested in ideas & suggestions from people like me in the organisation.

3. When suggestions were made to managers above me, they received fair evaluation.

4. Managers did not expect me to challenge or change the status quo （现状 ） .

5. Managers specifically encouraged me to bring about improvements in my workplace.

6. Managers took action on recommendations made from people at my level.

7. Managers rewarded me for correcting problems.8. Management clearly expected me to improve

work unit procedures & practices.9. I felt free to make recommendations to

managers above me to change existing practices.

10. Good ideas did not get communicated upwards because managers were not very approachable.

Subtract your scores for Q’s 4 & 10 from 6.Now add all scores, then divide by 10 = average

Adaptive culture shaped by values & actions of management – Q’aire indicates management’s openness to change – typical av score = 3