ORGANIZATION-ENVIRONMENT
INTERFACE
A presentation highlighting the effect of the business
environment in an organization beyond its economic
factors.
Organizational Environment
Operating Environment or
Task Environment
(EXTERNAL
ENVIRONMENT).
All organizations
depend upon the
task environment.
These are the elements beyond
the general environment which
have a specific and direct
bearing on the organization.
Task
TaskEnvironment
Environment
Direct
actio
n
Eleme
nts of
Task
enviro
nment
Indire
ct
actio
n
Elements of an Organizational Environment
overnment Financial Institutions
ecial groups Competitors
External stakeholders
Media
Customers
Empl
oyee
s
Internal
Stakeholders
Sharehol
ders &
Board of
Directors
ENVIRONMENTAL IMPACT ON
ORGANIZATIONS
Burns and Stalker
Lawrence and Lorsch
RIE
EO
S
Duncan model
TH
Mechanistic Organization:
works in a relatively simple environment
Tasks are segmented
Vertical Communication
Position based authority
Hierarchical & impersonal controls
Autocratic , programmed , computational decision making
High Formalization
High centralization
Burns and Stalker
• Organic Organization:
Relatively dynamic , complex & uncertain nature of environment
Tasks loosely defined
Lateral communication
Expertise based authority
Reciprocal control mechanism
Participative ,non programmed , judgmental decision making
Low formalization
Low centralization
Burns and Stalker
Lawrence and Lorsch :Differentiation-
Integration Theory
Differentiation-The degree of horizontal
complexity, as well as the diversity of
attitudes, perceptions and interpersonal
orientations among the members.
Integration-The degree to and manner in
which different organizational units and
departments collaborate to achieve an unity of
sorts.
DUNCAN: A MODEL FOR “RIGHT”
ORGANIZATIONAL STRUCTURE.
The framework was based on a conceptualization of environmental
uncertainty of two dimensions-
Environmental Change
Environmental Complexity
STATEGIES FOR MANAGING ENVIRONMENT
The strategies used by the organization to reduce uncertainty are:
• Domain Choice
• Recruitment
• Vertical Integration
• Buffering
Strategies (continued)…
• Smoothening
• Advertising
• Contracting
• Mergers/Acquisitions/Strategic Alliances
• Lobbying
Conclusion
An illustrated case study of
McDonalds
PRESENTED BY
ANIRBAN PAUL
IPSHITA GHOSH
JAYATI BANERJEE
MOHUL MUKHERJEE
