Chapter 13

Dynamic eg changing govt regulations affecting

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Dynamic (e.g. changing gov’t regulations affecting business, new competitors, changing preferences by customers) → more environmental uncertainty 3 DIMENSIONS OF ENVIRONMENTAL UNCERTAINTY Capacity = degree to which the environment can support growth - rich/growing environments generate excess resources for org when there’s scarcity - abundant capacity leaves room for org to make mistakes (scarce capacity does not) Volatility = degree of instability (predictable change) in an environment - dynamic environment: high degree of unpredictable change (low volatility) - stable environment: high volatility Complexity = degree of heterogeneity & concentration among environmental elements - simple environment: homogeneous, concentrated e.g. tobacco industry (few players) - complex environment: heterogeneous, disperse e.g. current cell connection business 3-D IMENSIONAL M ODEL OF THE E NVIRONMENT - scarce , dynamic , complex orgs → highest uncertainty → organic structure (highest unpredictability, little room for error, diverse set of elements to monitor) - abundant , stable , simple orgs → mechanistic structure
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P ART 5: R EORGANIZING THE W ORKPLACE *arrow indicates movement toward higher uncertainty
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Dynamic eg changing govt regulations affecting business new...

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