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ADMS1000 - LECTURE 1.docx

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Administrative Studies
ADMS 1000
Shahab Modirmassihai

 What are the fundamental external forces which all organizations must confront in their struggle to survive and prosper? ORGANIZATIONS AS OPEN SYSTEMS What is an organization? - Social entities: they are made up of people – generated and maintained by people – involve some level of human interaction - Goal oriented: some kind of goal or objective they were designed to achieve - Interact with the environment: an organization obtains inputs from its environment whether in the form of people, raw materials, technology or financial capital. All these inputs are transformed by the organization and become outputs: the goods, services or knowledge that the organization generates. Metaphors to describe organizations - A system can be defined as interdependent elements working together to achieve a goal or goals o The interdependence of its elements creates an entity that is more than the sum of its parts - Organizations as open systems  organizations are entities that are embedded in and dependent on exchanges with the environment they operate within - In addition, organizations can be viewed as social systems, with ppl constituting the basic elements - There have been time when organizations had been viewed as a closed system  fully self-sufficient entities requiring no interaction with the environment Feedback Inputs Physical Resources Process - plant - transformation - capital - materials to goods or Outputs services Human Resources generated by - goods or services - People the organization generated - Knowledge (e.g the manufacturing Technology process ) The Environment - An organization’s environment represents all elements that exist outside the organization and that potentially influence or affect the organization in some way - Emphasizes the importance of the environment and interaction with the environment - Organizations are crested in response to societal and environmental needs - Ultimately, environment will determine fate of organization The Environment Of Business: Forces That Determine Business Success Or Failure - We Need To Consider The External Forces – These Are Forces That Act On All Businesses In Any Location In The World. - The environment of an organization has been typically defined as: - Specific or task environment: organization directly operates - External stakeholders - These parties or groups have direct influence on an organization’s ability to obtain resources and generate outputs. - i.e employee, competitors, unions… - General environment: external environments of all organization in society - These factors ultimately shape the specific environment of the organization - Also influenced the organization’s ability to obtain resources GENERAL EXTERNAL ENVIRONMENT OF BUSINESS 1. ECONOMIC FORCES - Organizations are continuously forced to adapt to changing economic conditions - An economic slump can mean downsizing,
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