Chapter 2 The environment of orgnization and Managers.pptx

Management

1. SARDER ARIFUZZAMAN SR. LECTURER DEPARTMENT OF PHARMACY WORLD UNIVERSITY OF BANGLADESH

2. Learning Outcomes Discuss the nature of an organization’s environments and identify the components of its general, task, and internal environments. Describe the ethical and social environment of management, including individual ethics, the concept of social responsibility, and how organizations can manage social responsibility. Discuss the international environment of management, including trends in international business, levels of international business activities, and the context of international business. Describe the importance and determinants of an organization’s culture, as well as how organizational culture can be managed.

3. THE ORGANIZATION’S ENVIRONMENTS External environment Everything outside an organization’s boundaries that might affect it General environment The set of broad dimensions and forces in an organization’s surroundings that determines its overall context Task environment Specific organizations or groups that affect the organization Internal environment The conditions and forces within an organization

4. THE ORGANIZATION’S ENVIRONMENTS The general environment consists of 1. Economic dimension The overall health and vitality of the economic system in which the organization operates 2. Technological dimension The methods available for converting resources into products or services 3. The Political–Legal Dimension The political–legal dimension of the general environment consists of government regulation of business and the relationship between business and government.

5. THE ORGANIZATION’S ENVIRONMENTS The Task Environment consist of Competitors An organization’s competitors are other organizations that compete with it for resources. Customers A second dimension of the task environment is customers, or whoever pays money to acquire an organization’s products or services. Supplier Suppliers are organizations that provide resources for other organizations. Regulator A body that has the potential to control, legislate, or otherwise influence the organization’s policies and practices Regulatory agencies Regulatory agencies are created by the government to protect the public from certain business practices or to protect organizations from one another. Interest group A group organized by its members to attempt to influence organizations

6. Internal environment Task environment SQUARE Task Environment

7. THE ORGANIZATION’S ENVIRONMENTS Organizations also have an internal environment that consists of their owners, board of directors, employees, and physical work environment. Owners Whoever can claim property rights to an organization Board of directors Governing body that is elected by a corporation’s stockholders and charged with overseeing the general manage- ment of the firm to ensure that it is being run in a way that best serves the stockholders’ interests Employees An organization’s employees are also a major element of its internal environment. Physical Work Environment A final part of the internal environment is the orga-nization’s actual physical environment and the work that people do.

8. THE ETHICAL AND SOCIAL ENVIRONMENT OF MANAGEMENT Ethics An individual’s personal beliefs about whether a behavior, action, or decision is right or wrong Ethical behavior Beha vior that conforms to generally accepted social norms Unethical behavior Behavior that does not conform to generally accepted social norms Managerial ethics Standards of behavior that guide individual managers in their work codes of ethics —written statements of the values and ethical standards that guide the firms’ actions.

9. Social Responsibility in Organizations The set of obligations that an organization has to protect and enhance the societal context in which it functions

10. Social Responsibility in Organizations

11. THE INTERNATIONAL ENVIRONMENT OF MANAGEMENT When organizations decide to increase their level of internationalization, they can adopt several strategies. Each strategy is a matter of degree, as opposed to being a discrete and mutually exclusive category. And each has unique advantages that must be considered.

12. THE INTERNATIONAL ENVIRONMENT OF MANAGEMENT