STRATEGIES OF ORGANISATIONAL ENVIRONMENT

1. STRATEGIES OF ORGANISATIONAL
ENVIRONMENT

2. INTRODUCTION
 An organization faces two problems
while designing the strategies :
a) Interdependence between
organization and the environment.
b) Uncertain exchange between the
organization and the environment.
 The organization has to overcome these
two problems to deal with the
environment.
 There are THREE strategies to over
come it.

3. TYPES OF STRATEGIES

4. THREE STRATEGIES
• Strategies for insulating the
organization from the
environmental forces.
• Strategies for gaining the
control over certain aspects
of the environment.
• Strategies for organizational
adaptation.

5. INSULATION OF THE ORGANISATION
 Minimizing the negative impact
of environmental forces.
 Since the organization is an
open system, this can be done
only selectively.
 Strategy of boundary spanning
can be adopted as an
alternative like marketing
research, environmental
analysis etc

6. INSULATIONS
BUFFERING LEVELING
RATIONING

7. Insulations are:
 Buffering :
i) avoids impact of uncertainty.
ii) acts as a shock absorber.
 Smoothening or leveling:
i) adjusting the supply according to the demand
ii) increase and decrease of demand.
 Rationing:
i) method of curtaining demand.
ii) partial fulfilment of demand.

8. GAINING CONTROL OVER THE
ORGANISATION
• The basic objective of this type of strategy is
to gain control over some aspects of the
environment.
• This is to reduce the dependence of the
organization on the environment.
• This can be done through number of ways like-

9. GAINING CONTROL OVER THE ORGANISATION
AGREEMENT
CREATION OF PRESTIGE
LOBBYING

10. GAINING CONTROL OVER THE
ORGANIZATION
 Creation of Prestige- Environmental resources are allocated to those areas
with better usage.
i) It helps attracts environmental resources
ii) It helps reduce dependence on
environment
 Agreement: To gain control over the environment, an organization may enter
into agreement with environmental elements on which it depends
i) cooperative strategy.
ii) reduces uncertainty in the environment
 Cooptation : Process of absorbing new elements into the policy making
structure to avert threats and maintain stability.
i) create awareness and common
understanding to reduce environmental uncertainty.

11. GAINING CONTROL OVER THE
ORGANIZATION
 Coalescing : Two or more organization are merged which
have some sort of interdependency in the form of
procurements of inputs, disposal of outputs etc.
i) Merged environments mean better control of
environment and pooled resources
 Procurement of Key Personnel : In an organization, it can
enhance its capacity to overcome the environmental pressure.
 Lobbying: Process of convincing the various elements of the
environment in favor of the organization. i)
Effective in an association
ii) Eg- Federation of Indian Chambers of
Commerce and Industry

12. ORGANIZATIONAL ADAPTATION
 One of the most frequently adopted strategies to
respond to the environment by organizations is by:
 Adaptation of Organization Structure: designed
according to needs of the environment.
For eg, Mechanical structure- stable environment
Organic structure- Dynamic environment
 Adaptation of Systems and Processes: Various
organizational systems processes like control & planning
system, leadership system, information system human
designed according to the needs of the environment to be
able to cope with the environment

13. ORGANIZATIONAL ADAPTATION
ORGANISATIONAL
STRUCTURE
ORGANISATIONAL
SYSTEMS
AND PROCESSES

14. THANK YOU!