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BU398 Chapter 04
The External Environment
20
Business
Undergraduate 3
06/02/2014

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Term
Boundary spanning roles
Definition
link and coordiate an organization with key elements in the external environment to detect changes and send and recieve information to and from external environment
Term
Buffering roles
Definition
Absorb uncertainty in an environment by helping technical core function effectively. E.g. purchasing department stockpiling materials
Term
Cooptation
Definition
where leaders from external environment invited to sit on a company's board so they're more invested in company's outcomes
Term
Organizational Differention
Definition
The difference in congnitive and emotional orientations among managers and structure in different functional departments
Term
Direct interlock
Definition
The person from one company that sits on another's board
Term
Domain
Definition
An organization's chosen field of action, geographic and psychographic territory it stakes out for its products or services
Term
General Environment
Definition
Parts of the organizational environment that don't directly impact the day to day operations of a company but can still influence it. Think PEST+Financial Resources, or Political (government), economic, sociocultural, technological and financial forces
Term
Green environment
Definition
The natural environment that is not usually considered part of the organizational environment, but maybe should be
Term
Indirect interlock
Definition
Two individuals from different companies sit on a third company'sboard, so they have access to one another but no influence over one another
Term
Integration
Definition
Quality of collaboration between departments
Term
Interlocking directorate
Definition
One individual from one company sits on another's board and thus can influence that company
Term
Mechanistic
Definition
Centralized, vertical management system with formalized rules, plans and hierarchy
Term
Organic
Definition
Decentralized, unclear authority, ignored or unwritten rules and plans. Encourages teamwork and communication
Term
Organizational environment
Definition
Factors outside the organization that can influence it
Term
Resource dependence
Definition
How dependent is the organization on the environment for scarce resources? Need to balance maintaining independence with decreasing resource uncertainty
Term
Sectors
Definition
subdivisions of the environment that have similar elements
Term
Simple complex dimension
Definition
How heterogeneous external elements relevant to a company are, or how many and how different those factors are.
Term
Stable unstable dimension
Definition
Whether or not the elements in the environment are dynamic, if it remains stable or predictably changing or experiences abruptly and unexpectedly; generally everything is going towards unstable thanks to the internet
Term
Task Environment
Definition
Elements that directly affect the day to day operation of a company; Market(consumers), Industry(competitors), Human Resources (employees), Raw Materials (suppliers), and International elements.
Term
Uncertainty
Definition
How much information needed about and how many resources needed from the environment; How Generally concerned with task environment
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