Environment, organization culture and diversity
-> Environmental uncertainty: Environmental uncertainty is a lack of complete information
regarding what exists and what developments may occur in the external environment.
->Two dimensions of environmental uncertainty: Complexity and rate of change
What constitutes the external environment of organizations?
Economic - Example: Kia Motors (took advantage of the recession, introduced 7 years
warranty), Hyundai (if someone got laid off, then they will buy back the cars)
Socio-cultural – Example: Kraft (Consumers want to eat healthy, organic food which will impact
on the sales of Kraft)
Technological: Phone industry
Natural environment: Carbon Market – to control carbon emission.
What s a specific (task) external environment of organizations?
The specific (task) environment – actual organizations, groups, and persons with whom an
organization interacts and conducts business.
Includes important stakeholders such as: