HRM 601 Organizational Behavior Session 13 Organizational Environment

HRM 601 Organizational Behavior Session 13 Organizational Environment & Culture

External Environment • Events and conditions which surround affect the functioning of an organization.

Open System Model Inputs Environment Transformation Outputs

Components of the External Environment • • General economy Customers Suppliers Competitors Social Factors Legal and political factors Technology

Environmental Uncertainty Complexity Simple Static Rate of change Dynamic Complex Low Perceived Uncertainty Few factors which remain the same Moderately Low Perceived Uncertainty Many factors which remain the same Moderately High Perceived Uncertainty Few factors which are in a state of change High Perceived Uncertainty Many factors which are in a state of change

Managing Environmental Uncertainty • • Organizational structure Vertical integration Mergers and acquisitions Strategic alliances

Technology • The activities, equipment and knowledge necessary to transform inputs into goods and services

Perrow’s Types of Technology Exceptions Problems Technological Type Few Easy to analyze Routine technology Difficult to analyze Craft technology Easy to analyze Engineering technology Difficult to analyze Non-routine technology Many

Thompson’s Types of Technology Type Task Interdependence Integration Mediating Pooled (banks) Standardization Long-linked Sequential (assembly line) Hierarchy of Authority Intensive Reciprocal (hospital) Mutual Adjustment

Advanced Information Technology • The accumulation, storage, processing and transmission of data made possible by computers

Advanced Information Technology • Advanced Manufacturing Technology – Computer Aided Design and Manufacturing – Computer Integrated Manufacturing • Office Technology – Word processing – Communication (e-mail, fax) – Data bases, spreadsheets – Information storage and retrieval

Impact of Automation on Job Design • Manufacturing – Less skill on the shop floor – New jobs require skills in programming and electronics – Task lines blur between skill areas • Office technology – Initially some de-skilling – Ability to develop multiple skills in applications

Impact of Automation on Organizational Structure • Manufacturing – Flatter, more flexible structures – Increased need for coordination – Functional structures may be counterproductive • Office Technology – Flatter – Decentralized

Organization Culture • The cognitive framework of attitudes, values, norms, and expectations shared by members of the organization

Dimensions of Culture • • Innovativeness Stability People orientation Results orientation Informality Conscientiousness Collaborativeness

Transmission of Culture • • • Symbols and slogans Stories Ceremonies Mission statements Social learning

Impact of Culture • Strong vs weak cultures • Performance • Person-organizations fit