Lecture 10 - Socio-cultural International Environmental...

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Environment, Technology, and Uncertainty Professor Samuel B. Bacharach, Professor William Sonnenstuhl
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Organization and Uncertainty Organizations are mechanisms for managing uncertainty Organizations do things: They produce something – cars, well rounded students, health care, telecommunications. To do things must manage uncertainty.
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Environment is a Source of Uncertainty: Uncertainty regarding information Uncertainty regarding cause and effect relationships Uncertainty regarding outcomes Uncertainty regarding time Uncertainty of probability estimates
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Organizations and their environments: Organizations are dependent upon their environment Organizations can change their environment A middle position argues that organizations transform themselves to fit their environment
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What does environment mean? Industry relations Raw materials Human resources Financial Markets Economic conditions
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Environment continued: Technological innovations Government regulations
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Unformatted text preview: Socio-cultural International Environmental Uncertainty: Complexity and Change Simple Environment Complex Environment Stable Environment Low uncertainty Small no. elements Slow change Low-moderate Many elements Slow change Unstable Environment High-Moderate Small no. elements Continuous change High uncertainty Many elements Continuous change Technology and Uncertainty: Technology refers to the work an organization does to transform raw materials into a product. Machinery: assembly line and computers. Expert knowledge and skills: professors, lawyers, craftsmen, assembly line operators. Typology of Technology (Perrow) Few Exceptions Many Exceptions Unanalyzable Search Process Craft Non-routine Analyzable Search Process Routine Engineering Uncertainty and Organizational Form: Environment and technology create uncertainty for the organization to manage As a manager how do you design an organization to manage this uncertainty?...
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Lecture 10 - Socio-cultural International Environmental...

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