Lesson_05_Assignment - (1.) The organizational environment...

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(1.)The organizational environment is defined as all external elements outside the boundaries of the organization that have the potential to affect the organization in whole or in part. The task environment includes sectors that the organization directly interacts with and that directly impact the organization’s ability to accomplish its goals. A new internet-based company would primarily interact with different sectors than a government welfare agency. The internet company might be involved with the industry sector as they compete against similar companies for business. The internet company need to be involved with the market sector in order to keep up with the rapid changes that occur on the web. For example, MySpace, which was once the leading social networking site, has been replaced by Facebook. In a few years time, it will likely be another site that takes the top position. Consumers’ tastes change quickly. The welfare agency wouldn’t need to concern themselves with these sectors as they are not competing with another organization nor are they trying to market a product or products to the fickle consumer. The human resources sector would be important to both the internet-based company and the government welfare agency as this is an area that is of concern to every business. Training and education are essential to the success of all businesses. The international sector would not be of concern to the welfare agency as welfare agencies do not operate on an international scale. The internet company would be involved with the international sector. Many of their customers might be located internationally. They might employ the services of foreign organizations or deal in foreign products. Although an internet-based company could fall under a complex, unstable environment depending on the nature of the business, most operate in a simple, unstable environment. In a simple, unstable environment such as this, there are few elements but these elements are hard to predict and change quickly and unexpectedly. This environment carries a high-moderate level of uncertainty. Under normal circumstances, the welfare agency would face a complex, stable environment. There are many external elements to contend with but changes among these elements are gradual and predictable. The number of welfare recipients is normally steady and changes only gradually. This type of environment involves a low-moderate level of uncertainty. In some unusual circumstances, such as a within a depression, the external environment of the welfare agency could shift to a complex, unstable one that carries a high level of uncertainty. (2.) As complexity and uncertainty increase within the external environment, the number of departments
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This note was uploaded on 10/08/2010 for the course MGMT 331 taught by Professor Fries during the Summer '08 term at Pennsylvania State University, University Park.

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Lesson_05_Assignment - (1.) The organizational environment...

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