BU398 Chapter 4: OB II Chapter 4.docx
Document Summary
Organizational environment: all elements that exist outside the boundary of the organization that have the potential to affect all or part of the organization. Domain: chose field of action: organizations niche and external sections that organization will interact to accomplish goals. Task environment sectors that organization interacts directly and have direct impact on organizations ability to achieve goals: ex. Industry, raw materials, market sectors, human resources and international sectors. General environment sectors that might not have direct impact on daily operations of firm but will indirectly influence it: ex. Government, socio-cultural, economic conditions, technology and financial resource sectors. Essential ways the environment influences organizations: need for information about environment, need for resources from environment. Simple complex dimension: number and dissimilarity of external elements relevant to an organization"s operations. Stable- unstable dimension: how dynamic elements in environment are. Stable: instability when competitors react with aggressive moves and counter moves regarding advertising and new products.
