MGHB02H3 Chapter Notes - Chapter 15: Market Environment, Systems Management, Deskilling
Document Summary
External environment: events and conditions that influence activities of organization. Take inputs from external environment, transform, send back into environment as outputs. The need to cope with the demands of environment on both input and output. Interest groups: others (except direct competitors) have some vested interest in how an organization is managed. External environment is vague, difficult to diagnose, and unpredictable. Uncertainty depends on environment"s complexity and rate of change: simple environment, complex environment, static environment, dynamic environment. Low perceived uncertainty: small number of factors and. Moderately high perceived uncertainty: small number of factors and components in the environment, factors and components are. Uncertainty leads to lower confidence, more information must be processed to make adequate decisions. Environmental scanning, boundary spanning, planning and formal management information systems will be more prominent. Dependency of organizations on environmental inputs (capital, raw materials, human resources) Many small business exist with highly resource dependent.
