environment dependent organization perspective

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Perspective of organizational change

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Page 1: Environment dependent organization perspective

Perspective of organizational change

Page 2: Environment dependent organization perspective

Environment dependent organization perspective

The organizational environment is the set of forces surrounding an organization that have the potential to affect the way it operates and its access to sThe environment consists of specific and general forces. Specific forces directly affect an organization’s ability to obtain resources. General forces shape the specific environment and affect the ability of all organizations in a particular environment to obtain scarce resources.

Page 3: Environment dependent organization perspective

6 - 3

The Organizational Environment

Organization

Specific Forces

Demographic / Cultural Forces

General Forces

Environmental Forces

Economic Forces

Technological Forces

International Forces

Political Forces

Customers

Government

Suppliers Unions

Distributors

Competitors

Page 4: Environment dependent organization perspective

Contingency perspective

Contingency theory states that in order to manage its environment effectively, an organization should design its structure to fit with its environment.

A poor fit between structure and environment leads to failure, a close fit leads to success

Page 5: Environment dependent organization perspective

Managing in a Changing Global Environment

Sources of Environmental Uncertainty: complexity, dynamism, and richness

As the environment becomes more complex, less stable, and poorer, the level of uncertainty increases.

Page 6: Environment dependent organization perspective

Managing in a Changing Global Environment

The Effect of Uncertainty on Differentiation and Integration in Three Industries

Degree of uncertainty

Plastics Food-processing ContainerVariable industry industry industry

Environmental variable

Uncertainty (complexity,dynamism, richness)

Structural variables

Departmental differentiation

Cross-functional integration

High Moderate Low

High Moderate Low

High Moderate Low

Page 7: Environment dependent organization perspective

Resource dependence perspective

Resource dependence theory argues thatthe goal of an organization is to:

Minimize its dependence on other organizations for the supply of scarce resources AND To find ways of influencing these organizations to make resources availableOrganizations develop various strategies to manage their resource dependencies and control their access to scarce resources

Page 8: Environment dependent organization perspective

Population-ecology perspective

Population perspective advocate studying a population of multitude of an organisation rather than focusing on only one organisation population refer to organisations in a particularSector that occupy an ecological niche in the environment which in turn provide resources for the organization

Page 9: Environment dependent organization perspective

Institutional perspective

Institutional theory focuses on the deeper and more resilient aspects of social structure. It considers the processes by which structures, including schemas, rules, norms, and routines, become established as authoritative guidelines for social behavior.

Scott (1995) indicates that, in order to survive, organizations must conform to the rules and belief systems prevailing in the environment

Page 10: Environment dependent organization perspective

Evolutionary perspective

This theory says that organisational evolution occur through the interaction of internal convergent forces for stability and external change for change as mediated by executive leadership and one must recognise these forces to understand organisational evolution,

Page 11: Environment dependent organization perspective

Adaptation perspective

This perspective emphasises voluntarism and views the phenomenon of organisational as occuring in the following way. organisation scan for the relevent organizational environment, formulate strategic response to environmental change and attempt to adapt to changing environmental contexts in order to ensure organisational survival

Page 12: Environment dependent organization perspective

Process oriented perspective

Process oriented change perspective address organization’s changing cultural and human system using technology.

Page 13: Environment dependent organization perspective

Pattern in the change process

Lewin model of change process is one of the most powerful models on human systems in this model, lewin has provided three stages to bring about change in any system-unfreezing, changing and refreezing

Page 14: Environment dependent organization perspective

Alternative perspective

Page 15: Environment dependent organization perspective

Spiritual perspective

According to this perspective individual, organizationAs well as the society as a whole looks forward to non material, spiritual quality while seeking transformation

Core, non- economic beliefs , values and an empowering culture

Page 16: Environment dependent organization perspective

Vedic science perspective

Given by maharshi mahesh yogiCombination of top down approach(planned) and bottom up approach(learning)It focus on the objective aspects of an

organisation

Page 17: Environment dependent organization perspective

Rajesh Kumar,MBA,pondicherry

university