ADMN 232 Lecture Notes - Lecture 2: Punctuated Equilibrium, Organizational Culture, Regulation
14 Jul 2018
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External environments: all events outside a company that have potential to influence or affect it. Environmental change: rate at (cid:449)hi(cid:272)h a (cid:272)o(cid:373)pa(cid:374)(cid:455)"s ge(cid:374)eral & spe(cid:272)ifi(cid:272) e(cid:374)(cid:448)iro(cid:374)(cid:373)e(cid:374)ts (cid:272)ha(cid:374)ge. Stable environment: environment in which the rate of change is slow. Dynamic environment: environment in which the rate of change is fast. Punctuated equilibrium theory: companies go through long simple periods of stability, followed by short periods of dynamic, fundamental change, and end with a new return to stability. Environmental complexity: number of external factors in the environment that affect organizations. Environmental munificence: degree to (cid:449)hi(cid:272)h a(cid:374) orga(cid:374)izatio(cid:374)"s e(cid:454)ter(cid:374)al e(cid:374)(cid:448)iro(cid:374)(cid:373)e(cid:374)t has a(cid:374) a(cid:271)u(cid:374)da(cid:374)(cid:272)e or scarcity of critical organizational resources. Uncertainty: extent to which managers can understand or predict which environmental changes and trends will affect their businesses. General environment: economics, technological, socio-culture & political trends that indirectly affect all organizations. Specific environment: customers, competitors, suppliers, industrial regulation & public pressure group trends that are unique to an industry & directly affects the company.
