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HRM 601 Organizational Behavior. Session 13 Organizational Environment & Culture. External Environment . Events and conditions which surround and affect the functioning of an organization. Open System Model. Inputs. Environment. Environment. Transformation. Outputs.
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HRM 601 Organizational Behavior Session 13 Organizational Environment & Culture
External Environment • Events and conditions which surround and affect the functioning of an organization.
Open System Model Inputs Environment Environment Transformation Outputs
Components of the External Environment • General economy • Customers • Suppliers • Competitors • Social Factors • Legal and political factors • Technology
Environmental Uncertainty Complexity Simple Complex Low Perceived Uncertainty Few factors which remain the same Static Moderately Low Perceived Uncertainty Many factors which remain the same Rate of change Moderately High Perceived Uncertainty Few factors which are in a state of change High Perceived Uncertainty Many factors which are in a state of change Dynamic
Managing Environmental Uncertainty • Organizational structure • Vertical integration • Mergers and acquisitions • Strategic alliances
Technology • The activities, equipment and knowledge necessary to transform inputs into goods and services
Perrow’s Types of Technology Exceptions Problems Technological Type Few Easy to analyze Routine technology Difficult to analyze Craft technology Many Easy to analyze Engineering technology Difficult to analyze Non-routine technology
Thompson’s Types of Technology Technology Type Task Interdependence Integration Mediating Pooled Standardization (banks) Long-linked Sequential Hierarchy of (assembly line) Authority Intensive Reciprocal Mutual (hospital) Adjustment
Advanced Information Technology • The accumulation, storage, processing and transmission of data made possible by computers
Advanced Information Technology • Advanced Manufacturing Technology • Computer Aided Design and Manufacturing • Computer Integrated Manufacturing • Office Technology • Word processing • Communication (e-mail, fax) • Data bases, spreadsheets • Information storage and retrieval
Impact of Automation on Job Design • Manufacturing • Less skill on the shop floor • New jobs require skills in programming and electronics • Task lines blur between skill areas • Office technology • Initially some de-skilling • Ability to develop multiple skills in applications
Impact of Automation on Organizational Structure • Manufacturing • Flatter, more flexible structures • Increased need for coordination • Functional structures may be counter-productive • Office Technology • Flatter • Decentralized
Organization Culture • The cognitive framework of attitudes, values, norms, and expectations shared by members of the organization
Dimensions of Culture • Innovativeness • Stability • People orientation • Results orientation • Informality • Conscientiousness • Collaborativeness
Transmission of Culture • Symbols and slogans • Stories • Ceremonies • Mission statements • Social learning
Impactof Culture • Strong vs weak cultures • Performance • Person-organizations fit