Critical features of the input for analysis what have

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Unformatted text preview: of the organization? To what extent does the environment put constraints on organizational action? The congruence model suggests that in order to fully understand an organization’s performance, you must first understand the organization as a system that consists of some basic elements: The input it draws from both internal and external sources The strategy it employs to translate its vision into a set of decisions about where and how to compete, or, in the case of a government agency, the public policy results it wants to achieve Its output—the products and services it creates in order to fulfill its strategic objectives The critical transformation process through which people, working within the context of both formal and informal arrangements, convert input into output The Congruence Model To what extent are resources fixed, as opposed to flexible in their configuration? What is the current impact of historical factors such as: Strategic decisions? Acts of key leaders? Crises? Core value and norms? The real issue is how the interaction of these components results, for good or ill, in some level of performance. So it’s important to be clear about the nature of each component and its role in the organizational system. Basic Organizational Components Input An organization’s input includes the elements that, at any point in time, constitute the set of “givens” with which it has to work. There are three main categories of input, each of which affects the organization in different ways (see Figure 2). 1. The environment: Every organization exists within—and is influenced by—a larger environment, which includes people, other organizations, social and economic forces, and legal constraints. More specifically, the environment includes markets (clients or customers); suppliers; governmental and regulatory bodies; technological, economic, and social conditions; labor 5 unions; competitors; financial institutions, and special-interest groups. The environment affects organizations in three ways: It imposes demands. For instance, customer requirements and preferences determine the quantity, price, and quality of the offerings the organization can successfully provide. It imposes constraints ranging from capital limitations or insufficient technology to legal prohibitions rooted in government regulation, court action, or collective-bargaining agreements. It provides opportunities, such as new market possibilities resulting from technological innovation, government deregulation, or the removal of trade barriers. Every organization is directly influenced by its external environment; to put it even more emphatically, nearly all large-scale change originates in the external environment. The privatization of state-owned industries in Europe and the United Kingdom, for example, significantly altered the way they operate. To move from monopolies to a competitive landscape, utility companies were forced to change the ways they deal with customers and employees. In the United States, the market’s saturation with expensive servers and mainframes on the high end, and intense competition from lowcost producers of desktop computers...
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