Organization-Environment Relationships

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Most people know what the environment is, but when it comes to organizational environment there are many more things to it than just what is outside. One of the main points that I took away from chapter 8 was about how the different environmental factors affect the structure of an organization. The book talked about all of the different general environmental aspects that had to go with the organization. The economy is a big factor that will not directly work with the operations of an organization, but it will obviously affect how the organization will produce its product. Right now the economy is making some companies lower their prices in order to stay competitive and still have their products bought while at the same time trying to make a profit. It is a difficult process and the economy can be very difficult for the management. The book also talked about the task environment, which affect how the organization reaches its goals. The general environment and the task environment must go hand in hand if the company wants to strive. There is another section of the book that talks about actual and perceived environment. If there is a trend that is happening in the general environment, then the managers have to decide if they want to go with that trend or not. It is a decision that may ultimately make or break the organization, depending on the flexibility of that organization. There was some research done by Duncan that determined the complexity of an organization and how that related to the environment. I believe that he made a very good point and if potential managers would like to succeed, his research would be a good place to start. He said that a smaller company would be more successful if it was less complex. If that small company had less environmental complexities, then it would be able to function better. The opposite would be true for the larger, more complex organizations. Just like the environment of weather is unpredictable, sport organizations have unpredictability as well. The book states two different methods for dealing with the unpredictability which depends on the services that the company provides. If the company focuses on producing a product, then they will most likely try to change their internal processes to minimize uncertainty. On the other hand, if a company is more along the lines of providing a service, then they will go more towards changing the external environment in order to thrive. One last point that I believe is very important is concerning who is affected where there is environmental problems. The book states this as stakeholder theory. I am a big believer that for an organization to succeed, one of the most important things that they can do is to try to think of all of the different stakeholders first. Also, although it sounds like it may be unfair, the company should determine who are the most important stakeholders, and make a list of possible importance. Basing a lot of the decisions that are made by how the stakeholders will react will make it much easier to decide to go through with those decisions or not.