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BUSI 5301 Chapter 4
The External Environment
20
Business
Undergraduate 4
04/13/2017

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Term
boundary-spanning roles
Definition
activities that link and coordinate an organization with key elements in the external environment
Term
buffering roles
Definition
activities that absorb uncertainty from the environment
Term
cooptation
Definition
when leaders from important sectors in the environment are made part of an organization
Term
differentiation
Definition
the cognitive and emotional differences among managers in various functional departments of an organization and formal structure differences among these departments
Term
direct interlock
Definition
a situation that occurs when a member of the board of directors of one company sits on the board of another
Term
domain
Definition
an organization's chosen environmental field of activity
Term
general environment
Definition
includes those sectors that may not directly affect the daily operations of a firm but will indirectly influence it
Term
green environment
Definition
our natural environment
Term
indirect interlock
Definition
a situation that occurs when a director of one company and a director of another are both directors of a third company
Term
integration
Definition
the quality of collaboration between departments of an organization
Term
interlocking directorate
Definition
a formal linkage that occurs when a member of the board of directors of one company sits on the board of another company
Term
mechanistic
Definition
an organization system marked by rules, procedures, a clear hierarchy of authority, and centralized decision making
Term
organic
Definition
an organization system marked by free-flowing, adaptive processes, an unclear hierarchy of authority, and decentralized decision making
Term
organizational environment
Definition
all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization
Term
resource dependence
Definition
a situation in which organizations depend on the environment, but strive to acquire control over resources to minimize their dependence
Term
sectors
Definition
subdivisions of the external environment that contain similar elements
Term
simple-complex dimension
Definition
the number and dissimilarity of external elements relevant to an organization's operation
Term
stable-unstable dimension
Definition
the state of an organization's environmental elements
Term
task environment
Definition
sectors with which the organization interacts directly and that have a direct effect on the organization's ability to achieve its goals
Term
uncertainty
Definition
occurs when decision makers do not have sufficient information about environmental factors and have a difficult time predicting external changes
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