Student answers to these questions will vary c how

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Student answers to these questions will vary. C. How the External Environment Affects Managers 1. One of the most important organizational factors affected by changes in the external environment is jobs and employment. For example, economic downturns result in higher unemployment and place constraints on staffing and production quotas for managers. Not only does the external environment affect the number of jobs available, but it also impacts how jobs are managed and created. Changing conditions can create demands for more temporary work and alternative work arrangements. 2. Environments differ in their amount of environmental uncertainty , which relates to (1) the degree of change in an organization’s environment and (2) the degree of complexity in that environment (see Exhibit 3-3 ). a. Degree of change is characterized as being dynamic or stable. b. In a dynamic environment, components of the environment change frequently. If change is minimal, the environment is called a stable environment.
c. The degree of environmental complexity is the number of components in an organization’s environment and the extent of an organization’s knowledge about those components. d. If the number of components and the need for sophisticated knowledge is minimal, the environment is classified as simple. If a number of dissimilar components and a high need for sophisticated knowledge exist, the environment is complex. e. Because uncertainty is a threat to organizational effectiveness, managers try to minimize environmental uncertainty.
LEADER MAKING A DIFFERENCE Akio Toyoda faced a difficult first three years as the President of Toyota. In 2009, the company experienced their first operating loss in 70 years; in 2010, the company’s image was damaged by recalls; and in 2011, the tsunami in Japan damaged Toyota’s global supply chain. Akio was not deterred and sought to make the company react faster and be more flexible. This meant changing management and refocusing on key stakeholders. Students are asked what they can learn from Mr. Toyoda. Responses should include his quick response during a time of crisis and his willingness to adapt to a changing environment. What can you learn from this leader making a difference?

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