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The Organization’s Environment
Legal-Political
Stockholders
Socio-Cultural
Customers
Suppliers
Organization
Community
Economic
Competitors
Technological
Conditions
Society
Natural Environment
Organization as Open System
Input
Resources
Transform
The
Organization
Output
Goods/Services
Management
The Business
Enterprise
Management
The Business
Enterprise
Management
The Business
Enterprise
Group Discussion: What are the implications of
the statement—”Management is Not Practiced in
a Vacuum”
Hint: Use the evolution of management to date to
explain your answer
Management
The Business
Enterprise
The Changing Environment of Management
• Social Environment
– Life Styles
– Shifting Demographics
• Economic Environment What does this
cause?
– Global Economy (Interconnected World)
– Business Cycles (unpredictability of)
• Social Contract between Employee & Employer
– Downward Pressure on LoyaltyWhy?
• Technological Environment
– Increasing Communication
– Increasing Connectivity Across Vast
Distances—Physical boundaries no longer
impede What results?
What Manager’s Want from Employees.
Adaptability/Openness to change
WHY
THESE?
53
How do
More Teamwork
they relate
to “what’s
happening”
?
Ability to see the "Big Picture"
44
39
0
10
20
30
40
50
60
More Challenges
• Socio-Political Environment
– individual’s rights vs organization’s rights
•EEOC
•diversity
•privacy
– society vs organization
•consumer protection
•environmental issues (see Kyoto Treaty)
– government <==> business (see Kyoto)
• influencing each other, laws & lobbying
“Political” Response Continuum
Reactive
--defend
status quo
Neutral
--wait &
see
Proactive
-- improve
to avoid
intervention
& legislation
Issues Management
• Identify, Assess & Respond to SocioPolitical Issues ==> No Surprises, be
aware
• Know the Boundaries, Understand
the Dynamics in Society
• Be Proactive, not Re-active
Issue: Global Warming & KYOTO Treaty
• What stance has EXXON taken on this issue?
• Is it a reasonable approach? Why?
– Have they acted in accordance with the dynamics?
– Are they proactive or reactive?
• What (other) factors/issues confound or complicate
the position one takes?
• To what extent can their management approach
explain why they’ve taken the position they have?
What do you think is the primary cause of/reason
for their position?
• What are the consequences of
– Not supporting Kyoto?
– Supporting Kyoto?
Technological Environment
• Changes What Business You Are In
• Changes the Way Business is
Conducted
• Changes Competitive Advantage
Managing in the face of changing Technology
A Matter of Technology Development
Concept
Product
Production
• Duration of An Organization's Innovation
Process
• Intrapreneurship: Degree of Creative
Activity within an Organization
Forecast Challenges in 21st Century
• More Frequent Change
• Increased Intensity of Competition via
Globalization
• Virtual Organization
• Part-time/Contingent Workers
• Knowledge Workers
• Worker Diversity
• Aging Workforce
• Merging of Personal & Business Life
• Increased Politicization of Management
Group Discussions:
• How will these conditions affect
management practice?
• What will managers have to learn to
do?
• What management theory best fits
 More
Frequent Change
each
change?
Why?








Increased Intensity of Competition via Globalization
Virtual Organization
Part-time/Contingent Workers
Knowledge Workers
Worker Diversity
Aging Workforce
Merging of Personal & Business Life
Increased Politicization of Management
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