LINGKUNGAN ORGANISASI

Oleh:CHOIRUL SALEH

Pertemuan Ke 16

THE ENVIRONMENT OF ORGANIZATION

We are mentioned earlier, organization are open system that import resources from the environment and transform these resources into outputs that are exported into the environment

This open system view of organization illustrates that an organization is subsystem of a large system (supra system) which is the organization’s environment.

In general, the supra system is influenced by the organization and influences the organization. To understand the different levels of influence, it may be useful to think of the environment in two ways.1. The societal (general) environment which

affects all organization in given society.2. The specific (task) environment which affects

the individual organization more directly

The General Environment

Various researchers have suggested many general environmental domains which affects all organizations.

General environmental domains for organizations:1. Cultural

Including the historical background, ideologies, values, and norms of the society2. Technological The level of scientific and technological advancement in society.3. Educational The general literacy level of the population. The degree of sophistication and

specialization in the educational system4. Political. The general political climate of society. The degree of concentration of political

power. The nature of political organization (degree of decentralization, diversity of functions, etc.). The political party system

5. Legal Constitutional considerations, nature of legal system, jurisdictions of various

governmental units. Specific laws concerning formation, taxation, and control of organizations

6. Natural resources The nature, quantity, and availability of natural sources, including climatic and

other conditions7. Demographic The nature of human resources available to the society: their number,

distribution, age,, and sex. Concentration or urbanization of population is a characteristic of industrial societies

8. Sociological Class structure and mobility. Definition of social roles. Nature of social

organization and development of social institutions9. Economic. General economic framework, including the type of economic organization –

private versus public ownership. The centralization or decentralization of economic planning; the banking system; and fiscal policies. The level of the investment in physical resources and consumption characteristic

The General Environment (Cont)

Figure 1. Relevant components of the specific (task) environment for a typical organization

Costumer Components•Distributors of product or service•Actual users of product or service

Suppliers Components•New materials suppliers•Equipment suppliers•Products parts suppliers•Labor supply

Competitor Component•Competitors for suppliers•Competitors for customers

Socio-political Component•Government regulatory control over the industry•Public political attitude towards industry and its particular product•Relationship with trade unions with jurisdiction in the organization

Technological Component•Meeting new technological requirements of own industry and related industry in production of product or service•Improving and developing new products by implementing new technological advances in the industry

General environment cultural

Technological

Educational

Political

Legal Natural resource

Demographic

Sociological

Economic

Task environment competitors

Suppliers

Custo

mer

s Technological

Soc

io-p

oliti

cal

ORGANIZATION

OrganizationalBoundary

Figure 2. Relationship of General and Task Environments to The Organization

Figure 3. Characteristic of Environmental States

SIMPLE COMPLEX

Static CELL 1:Low Perceived Uncertainty

1. Small number of factors and components in the environment

2. Factors and components are somewhat similar to one another

3. Factors and components remain basically the same and are not changing

CELL 2:Moderately Low Perceived Uncertainty

1. Large number of factors and components in the environment

2. Factors and components are not similar to one another

3. Factors and components remain basically to the same

Dynamic CELL 3:Moderately High Perceived Uncertainty

1. Small number of factors and components in the environment

2. Factors and components are somewhat similar to one another

3. Factors and components of the environment are in continual process of change

CELL 4:High Perceived Uncertainty

1. Large number of factors and components in the environment

2. Factors and components are not similar to one another

3. Factors and components of environment are in a continual process of change

SIMPLE KNOWLEDGE ENVIRONMENT

COMPLEX KNOWLEDGE ENVIRONMENT

Placid environment characteristic

I. Mechanistic a. Little uncertainty b. Little change c. Standard work processes for

control d. Bureaucratic organization form

II. Mechanistic a. Moderately low uncertainty b. Little change but a large number

of variables in the environment c. Standard work skills for control d. Decentralized bureaucratic form

Turbulent environment characteristic

III. Organic a. Moderately high uncertainty b. Small number of variables but

a lot of change c. Tight personal control d. Centralized organization

IV. Organic a. High uncertainty b. Large number of variables and a

lot of change c. Mutual adjustment for control d. Decentralized organization form

Table 4. Environmental/Structural Matching

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The External Environment

Customers

Competitors

Suppliers

PublicPressureGroups

TheOrganization

Laws andpolitics

Economy

Technology

DemographicsSocialvalues

Macro environmentCompetitiveEnvironment

OrganizationSuppliers

NewEntrants

SubstitutesRivals

Buyers

The External Environment

Two Organization Design Approaches

VerticalStructure

RoutineTasks

RigidCulture

CompetitiveStrategy

FormalSystems

HorizontalStructure

AdaptiveCulture

EmpoweredRoles

CollaborativeStrategy

SharedInformation

Organizational Changein the Service of

Performance

Mechanical System Design

Natural System Design

Stable EnvironmentEfficient Performance

Turbulent EnvironmentLearning Organization

Source: Adapted from David K. Hurst, Crisis and Renewal: Meeting the Challenge of Organizational Change (Boston, Mass.: Harvard Business School)

The Macro Environment• The macro environment

– most general elements in the external environment that can potentially influence strategic decisions

– all organizations are affected by the general components of the macro environment

• Laws and regulations– impose strategic constraints and provide

opportunities– regulators - specific government

organizations in a firm’s more immediate task environment• have the power to investigate company

practices and take legal action to ensure compliance with the laws

The Macro environment (cont.) The economy

◦ created by complex interconnections among economies of different countries

◦ important elements include interest rates, inflation rates, unemployment rates, and the stock market

◦ economic conditions change and are difficult to predict

Technology◦ creates new products, advanced production

techniques, and improved methods of managing and communicating

◦ strategies that ignore or lag behind competitors in considering technology lead to obsolescence and extinction

The Macro Environment (cont.) Demographics

◦measures of various characteristics of the people comprising groups or other social units age, gender, family size, income, education,

occupation◦workforce demographics must be considered

in formulating human resources strategies population growth influences the size and

composition of the labor force◦ immigration also is a significant factor

increasing diversity of the labor force has both advantages and disadvantages must assure equal employment

opportunity

The Macro environment (cont.)

Social issues and the natural environment◦management must be aware of how people think and behave the role of women in the workplace providing benefits for domestic partners of employees

protection of the natural environment

Competitive Environment Competitive environment

◦comprises the specific organizations with which the organization interacts Michael Porter - defined the competitive environment

◦successful managers: react to the competitive environment; and

act in ways that actually shape or change the competitive environment

Rival firms

Newentrants

Suppliers Customers

Substitutes

Competitive Environment

Competitive Environment (cont.)

Competitors◦competitors within an industry must deal

with one another◦organizations must: identify their competitors analyze how competitors compete react to and anticipate competitors’

actions◦competition is most intense: where there are many competitors when industry growth is slow when the product or service cannot be

differentiated

Competitive Environment (cont.)

Threat of new entrants◦barriers to entry - influence the degree of threat

conditions that prevent new companies from entering an industry

include government policy, capital requirements, and brand identification, cost disadvantages, and distribution channels

Threat of substitutes◦ technological advances and economic

efficiencies may result in substitutes for existing products

◦substitutes can limit another industry’s revenue potential

◦companies need to think about potentially viable substitutes

Competitive Environment (cont.)

Suppliers◦ provide the resources needed for production◦ powerful suppliers can reduce an organization’s

profits international labor unions are noteworthy suppliers

◦ dependence on powerful suppliers is a competitive disadvantage power of supplier determined by:

availability of other suppliers from whom to buy the number of customers for the supplier’s

products switching costs - fixed costs buyers face if they change

suppliers◦ close supplier relationship is the new model for

organizations

Competitive Environment (cont.)

Customers◦ purchase the products or services the organization

offers final consumers - purchase products in their

final form intermediate consumers - buy raw materials or

wholesale products before selling them to final consumers

◦customer service - giving customers what they want, the way they want it, the first time

◦ disadvantageous to depend too heavily on powerful customers powerful customers make large purchases and/or

have other suppliers

Organizational Stakeholders

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