1. THE ORGANISATION
ENVIRONMENT

2. WHAT IS ORGANISATIONAL
ENVIRONMENT?
 THE SET OF FORCES
SURROUNDING AN ORGANISATION
THAT HAVE THE POTENTIAL TO
AFFECT THE WAY IT OPERATES
AND ITS ACCESS TO SCARCE
RESOURCES

3. SPECIFIC FORCES
 CUSTOMERS
 DISTRIBUTION CHAIN
 SUPPLIERS
 COMPETITORS
 UNION
 GOVT.

4. GENERAL FORCES
 TECHNOLOGY
 ECONOMY
 ENVIRONMENT
 DEMOGRAPHY
 POLITY
 GLOBALISATION

5. ENVIRONMENTAL
DIMENSIONS
 SIMPLE – STABLE - RICH
 Few products/ services
 Limited customers/ suppliers/ competitors
 Minimal need for sophisticated knowledge
 COMPLEX - DYNAMIC - POOR
 Many products/ services
 Many customers/ suppliers/ competitors
 High need for sophisticated knowledge

6. CONTINGENCY THEORY
LAWRENCE AND LORSCH (1967)
 Plastics, Food And Container Industry
 Differentiation
 Degree to which individuals in different depts. vary
in their goals and value orientations
 Integration
 Degree to which members of various depts.
achieve unity of effort

7. LAWRENCE AND LORSCH
(CONTD.)
 Depts. Align with their Specific
Environment
 Functional structure
 Diverse Environment – Differentiated
Orgn. Structure
 Successful Firms – Higher Degree of
Integration
 Liaison roles

8. BURNS AND STALKER
(1961)
 UNSTABLE-CHANGING ENVN.
 Organic Structure
 STABLE ENVN.
 Mechanistic Structure

9. CONCEPTUALISING ENVN.
 Sources of Uncertainty
 Heterogeneity
 Volatility
 Threat
 Interconnectedness
 Lack of coordination

10. CONCEPTUALISING ENVN.
(Contd.)
 Sources of Dependence
 Scarcity
 Concentration
 Coordination

11. MANAGING TASK ENVN.
 BUFFERING STRATEGIES
 Intra-Organizational Techniques Aimed at
Reducing Uncertainty for the Technical
Core
 Coding
 Stockpiling
 Leveling
 Forecasting
 Growth

12. MANAGING TASK ENVN.
(contd.)
 BRIDGING STRATEGIES
 Response to Increasing Organizational
Interdependence
 Bargaining
 Contracting
 Co-optation
 Joint Ventures
 Mergers
 Associations

13. MANAGING INSTITUTIONAL
ENVN.
 SOURCE OF LEGITIMACY
 INSTITUTIONAL BRIDGING STRATEGIES
 Structural Conformity
 Procedural Conformity
 Personnel Conformity
 Legitimated Vocabularies
 LOOSELY COUPLED SYSTEMS
 Rational Myths

14. ENACTED ENVIRONMENT
 OBJECTIVE ENVIRONMENT
 DIFFUSED ENTITY
 MANAGERS ‘PERCEIVE’ ENVN.
 ORGNS. ENACT ENVN. (Weick)
 Past Experience
 Power to Manipulate & Control
 Managers Exercise Strategic Choice

15. ENVN. & ORGN.
STRUCTURE
 MAPPING ENVIRONMENTAL COMPLEXITY
 INTEGRATION (LAWRENCE AND LORSCH)
 LOOSE COUPLING
 MECHANISTIC VS. ORGANIC
STRUCTURES
 ENACT ENVN.
 GROWTH AND MERGERS
 EXERCISE STRATEGIC CHOICE
 ORGANISATIONS FORM THE
ENVIRONMENT FOR ORGANISTIONS