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Open system is a system that takes in resources from its external environment and converts them into goods and services that are then sent back to that environment foe purchase by customers
Closed system is a system that is self-contained and thus not affected by changes occurred in its external environment.
Synergy is a performance gains that result when individuals and departments coordinate their actions.
Contingency theory is the idea that the organizational structures and control systems managers choose depend on – are contingent on – characteristics of the external environment in which the organization operates.
Topic 3. Managing the Organizational Environment
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Task environment is the set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect organization’s ability to obtain inputs and dispose of its outputs because they influence managers on a daily basis.
General environment is the wide-ranging economic, technological, sociocultural, demographic, political and legal, and global forces that affect an organization and its task environment.
Suppliers – individuals andorganizations that provide an organization with the input resources that it needs to produce goods and services.
Distributors – organizations that help other organizations sell their goods or services to customers.
Customers – individuals and groups that buy the goods or services that an organization produces.
Competitors – organizations that produce goods or services that are similar to a particular organization’s goods or services.
Economic forces - interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organization.
Technological forces – outcomes of changes in the technology that managers use to design, produce or distribute goods or services.
Sociocultural forces – pressures emanating from the social structure of a country or society or from the national culture.
Demographic forces – outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.
Political and legal forces – outcomes of changes in laws and regulations, such as the deregulation of industries, the privatization of organizations, and increased emphasis on environment protection.
Global forces -outcomes of changes in international relationships; changes in nations’ economic, political, and legal systems and other.
2. Social responsibility is a manager’s duty or obligation to make decisions that promote the welfare and well-being of stakeholders and society as a whole.
Form of socially responsible behavior:
3. Ethics – moral principles or beliefs about what is right or wrong.
Societal Ethics – standards that govern how members of a society are to deal with each other on issues such as fairness, justice, poverty, and the rights of the individuals.
Professional Ethics - standards that govern how members of a profession are to make decisions when the way they should behave is not clear-cut.
Individual Ethics – personal standards that govern how individuals are to interact with other people.
Organizational culture – the set of values, norms, standards for behavior, and shared expectations that influence the ways in which individuals, groups and teams interact with each other and cooperate to achieve organizational goals.
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