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Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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The External EnvironmentThe External Environment
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Defining the External EnvironmentDefining the External Environment
External EnvironmentExternal Environment
Those factors and forces outside the Those factors and forces outside the organization that affect the organization’s organization that affect the organization’s performance. performance.
Components of the External EnvironmentComponents of the External Environment
Specific environment:Specific environment: external forces external forces that have a direct and immediate impact that have a direct and immediate impact on the organization.on the organization.
General environment:General environment: broad economic, broad economic, socio-cultural, political/legal, socio-cultural, political/legal, demographic, technological, and global demographic, technological, and global conditions that conditions that maymay affect the affect the organization.organization.
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Parameters of Managerial DiscretionParameters of Managerial Discretion
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Logistic Function Organisation
Funcţie realizată prin resurse interne
Funcţie realizată prin contractare externă
Alianţă pentru performanţă în afaceri
Integrare funcţională sporităAutonomie operaţională sporită
4PL
Client
Client
Client Compartimente logistice
3PL
3PL
Furnizor de servicii
Firmă de consultanţă
Funcţie realizată prin resurse interne
Funcţie realizată prin contractare externă
Alianţă pentru performanţă în afaceri
Integrare funcţională sporităAutonomie operaţională sporită
4PL
Client
Client
Client Compartimente logistice
3PL
3PL
Furnizor de servicii
Firmă de consultanţă
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Implications of the Implications of the Systems ApproachSystems Approach
Coordination Coordination of the organization’s of the organization’s parts is essential for proper parts is essential for proper functioning of the entire functioning of the entire organization.organization.
Decisions and actionsDecisions and actions taken in one taken in one area of the organization will have area of the organization will have an effect in other areas of the an effect in other areas of the organization.organization.
Organizations are not self-Organizations are not self-contained and, therefore, must contained and, therefore, must adapt to changesadapt to changes in their external in their external environment.environment.
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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The Contingency The Contingency ApproachApproach
Contingency Approach DefinedContingency Approach Defined
Also sometimes called the Also sometimes called the situational approach.situational approach.
There is no one universally There is no one universally applicable set of management applicable set of management principles (rules) by which to principles (rules) by which to manage organizations.manage organizations.
Organizations are individually Organizations are individually different, face different situations different, face different situations (contingency variables), and require (contingency variables), and require different ways of managing.different ways of managing.
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Popular Contingency Popular Contingency VariablesVariables
• Organization size• As size increases, so do the problems of
coordination.
• Routineness of task technology• Routine technologies require
organizational structures, leadership styles, and control systems that differ from those required by customized or
nonroutine technologies.
• Environmental uncertainty• What works best in a stable and
predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment.
• Individual differences• Individuals differ in terms of their desire
for growth, autonomy, tolerance of ambiguity, and expectations.
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Current Trends and Current Trends and IssuesIssues
GlobalizationGlobalization EthicsEthics Workforce DiversityWorkforce Diversity EntrepreneurshipEntrepreneurship E-businessE-business Knowledge ManagementKnowledge Management Learning OrganizationsLearning Organizations Quality ManagementQuality Management
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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How Organizations Go GlobalHow Organizations Go Global
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Current Trends and Current Trends and Issues (cont’d)Issues (cont’d)
GlobalizationGlobalization Management in international Management in international
organizationsorganizations Political and cultural challenges of Political and cultural challenges of
operating in a global marketoperating in a global market Working with people from different culturesWorking with people from different cultures Coping with anticapitalist backlashCoping with anticapitalist backlash Movement of jobs to countries with low-Movement of jobs to countries with low-
cost laborcost labor
EthicsEthics Increased emphasis on ethics education Increased emphasis on ethics education
in college curriculumsin college curriculums Increased creation and use of codes of Increased creation and use of codes of
ethics by businessesethics by businesses
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Categories of E-Business InvolvementCategories of E-Business Involvement
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Distribution and Technology Organisation
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Dimensions of Organizational CultureDimensions of Organizational Culture
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Spirituality and Spirituality and Organizational CultureOrganizational Culture
Workplace SpiritualityWorkplace Spirituality The recognition that people have an inner The recognition that people have an inner
life that nourishes and is nourished by life that nourishes and is nourished by meaningful work that takes place in the meaningful work that takes place in the context of community.context of community.
Characteristics of a Spiritual OrganizationCharacteristics of a Spiritual Organization Strong sense of purposeStrong sense of purpose Focus on individual developmentFocus on individual development Trust and opennessTrust and openness Employee empowermentEmployee empowerment Toleration of employees’ expressionToleration of employees’ expression
Commercial Economics LeCommercial Economics Lectures 3-4ctures 3-4
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Benefits of SpiritualityBenefits of Spirituality
Improved employee productivityImproved employee productivity Reduction of employee turnoverReduction of employee turnover Stronger organizational Stronger organizational
performanceperformance Increased creativityIncreased creativity Increased employee satisfactionIncreased employee satisfaction Increased team performanceIncreased team performance Increased organizational Increased organizational
performanceperformance