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BU398 > C.4 The External Environment > Flashcards

C.4 The External Environment Flashcards

1
Q

efficiency

A

amount of resources used to produce a unit of output

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2
Q

effectiveness

A

degree to which an organization achieves its goals

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3
Q

ways to assess effectiveness

A
  • contingency perspective
  • competing values model
  • balanced scorecard
  • integrated reporting
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4
Q

what are the contingency effectiveness approaches

A
  • resource based approach (inputs)
  • internal process approach (org)
  • goal approach (outputs)
  • integrated effectiveness model (competing-values model)
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5
Q

resource-based approach: indicators and usefulness

A

indicators:
- bargaining position
- abilities
- response to changes
usefulness:
- value
- limitations

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6
Q

when is resource-based approach a good choice

A

good for orgs that can’t measure anything else other than their resources (no other obvious indicators)

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7
Q

internal-process approach: indicators and usefulness

A 
indicators:
- strong culture & team spirit
- confidence, trust, comm
- decision-making
- rewards for performance, growth, and development
- interaction between org and its parts
usefulness:
- efficient use of resources
- harmonious internal functioning
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8
Q

internal-process approach: how does it measure effectiveness

A

very internal focus to see how efficient they are. all the indicators are subjective and qualitative. doesn’t give a good measurement of effectiveness due to subjective nature

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9
Q

goal approach: indicators and usefulness

A

indicators:
- meeting operative goals vs official (mission) goals
- multiple (and conflicting) operative goals
usefulness:
- output is measurable
- output can be evaluated
- limitation: measurement of conflicting goals

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10
Q

integrated effectiveness model: indicators and usefulness

A 
indicators:
- focus: internal vs external
- structure: stability vs flexibility
usefulness:
- integrates diverse concepts into single perspective
- identifies opposing mgmt values
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11
Q

Four approaches to effectiveness values:
What emphasis has Internal Focus & Flexible?
What are its primary goals and subgoals?

A 
HR Emphasis:
Primary goals:
- HR development
Subgoals:
- Cohesion
- Morale
- Training
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12
Q

Four approaches to effectiveness values:
What emphasis has External Focus & Flexible?
What are its primary goals and subgoals?

A 
Open-Systems Emphasis
Primary goals:
- Growth
- Resource acquisition
Subgoals:
- Flexibility
- Readiness
- External Evaluation
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13
Q

Four approaches to effectiveness values:
What emphasis has Internal Focus & Control?
What are its primary goals and subgoals?

A 
Internal-Process Emphasis
Primary goals:
- stability
- equilibrium
Subgoals:
- info. mgmt.
- communication
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14
Q

Four approaches to effectiveness values:
What emphasis has External Focus & Control?
What are its primary goals and subgoals?

A 
Rational-Goal Emphasis
Primary goals:
- productivity
- efficiency
- profit
Subgoals:
- planning
- goal-setting
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15
Q

rational goal emphasis:

  1. what type of structure?
  2. culture?
A
  1. vertical

2. mission

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16
Q

internal-process emphasis:

  1. structure?
  2. culture?
A
  1. functional

2. bureaucratic

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17
Q

HR emphasis:

  1. structure?
  2. culture?
A
  1. horizontal

2. clan type

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18
Q

what are elements of a balanced scorecard?

A
  • customer satisfaction
  • short & long term financial performance metrics
  • production and operating statistics
  • metrics for forward-looking human capital development
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19
Q

integrated reporting a.k.a.

A

sustainability reporting

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20
Q

example of effectiveness indicators

A
  • company goals
  • stakeholder goals
  • contingency perspective approaches
  • values in competing values model
  • balanced scorecard metrics
  • integrated reporting standards
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21
Q 
An organization is:
1. 
2. 
3. 
4.
A
  1. a social entity
  2. goal directed
  3. deliberately structured & coordinated
  4. linked to the environment
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22
Q

define organizational environment

A

all elements outside the boundary of the org that have the potential to affect the org

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23
Q

task environment

A
  • core environment
  • direct impact: industry sectors, raw materials sectors, market sectors, HR sectors, competitive landscape, and international sectors
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24
Q

general environment

A
  • everything else lol
  • indirect impact: govt sector, sociocultural sector, technological sector,. financial resources sector, and economic conditions sector
25
industry sector
- competitors - industry size and competitiveness - related issues
26
raw materials sectors
- suppliers - manufacturers - real estate - services
27
HR sector
- labour market - employment agencies - universities - training schools - employees in other orgs - unionization
28
financial resources sector
- stock markets - banks - savings and loans - private investors
29
market sector
- customers - clients - potential users of products and services
30
tech sector
- techniques of production - science - computers - IT
31
economic conditions sector
- recession - unemployment rate - inflation rate - rate of investment - growth
32
govt sector
- city, state - federal laws and regulations - taxes - govt services - court system - political process
33
sociocultural sector
- age - values - beliefs - education - work ethic - religion - consumer and green movements
34
international sector
- competition from acquisition by foreign firms - entry into overseas markets - foreign customers - regulations - exchange rates
35
environmental uncertainty: simple vs complex
the more unique factors the more complex
36
environmental uncertainty: stable vs unstable
unstable means the changes are quick, unpredictable, and hard to prepare for
37
environmental uncertainty: | simple + stable =
low uncertainty. | not affected by much and doesn't really change (or changes real slow)
38
environmental uncertainty: | complex + stable =
low-moderate uncertainty. | you can deal with the uncertainty from having many elements bc changes happen so slowly
39
environmental uncertainty: | simple + unstable
high-moderate uncertainty. | not a lot of sectors but the second any of them change it's real fast
40
environmental uncertainty: | complex + unstable
high uncertainty. | a shit show
41
examples of low uncertainty
- soft drink bottlers - beer distributors - container manufacturers - food processors
42
examples of low-moderate uncertainty
- universities - appliance manufacturers - chemicals - insurance
43
examples of high-moderate uncertainty
- e-commerce - fashion clothing - music industry - toy manufacturers
44
examples of high uncertainty
- computer firms - aerospace firms - telecommunications - airlines
45
how can a firm adapt to uncertainty?
- adding positions an departments - buffering & boundary spanning roles - differentiation and integration between departments - mechanistic vs organic management - planning, forecasting, and responsiveness
46
what is buffering
traditional version of boundary-spanning where they would make departments around a specialized core so that nothing would distract the specialized core
47
what is a boundary spanning role
exmaple: dual role of marketing where they send environment out and also bring it back in. customers don't like a product? why? bring that back in. now send info back out to show how adaptive they are
48
differentiation
as we become more uncertain and complex our departments need to become more specialized
49
integration
when you need to add a horizontal communication link to make sure information is getting exchanged
50
how should low uncertainty deal with environmental uncertainty?
- mechanistic structure; formal, centralized - few departments - no integrating roles - current operations orientation; low speed response
51
how should low-moderate uncertainty deal with environmental uncertainty?
- mechanistic structure; formal, centralized - many departments, some boundary spanning - few integrating roles - some planning; moderate speed response
52
how should high-moderate uncertainty deal with environmental uncertainty?
- organic structure, teamwork; parcipitative, decentralized - few departments, much boundary spanning - few integrating roles - planning orientation; fast reponse
53
how should high uncertainty deal with environmental uncertainty?
- organic structure; teamwork - many departments differentiated. extensive boundary spanning - many integrating roles - extensive planning, forecasting; high speed response
54
what is resource dependence
when an org depends on the environment
55
the amount of resource dependence you have puts you on the spectrum of what two things?
control vs autonomy
56
methods to control resources (inter org links)
- ownership - strategic alliances - cooptation, interlocking directorates - exec recruitment - advertising & PR
57
methods to control the environment
- change domain - political lobbying - trade association - illegitimate activities
58
define cooptation
companies try to get an influential person on their BoD to help with controlling or addressing resource dependencce
59
define direct interlock vs indirect interlock
direct: Bob sits on company A and B. Bob will push for things that help A to B indirect: Bob sits on A, Frank sits on B, and Bob and Frank both sit on C

BU398 (9 decks)

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