Exam 4: The External Environment
Resource dependence means that organizations depend on the environment but strive to acquire control over resources to minimize their dependence.
True
Explain the pro and con arguments to creation of buffering roles.
The creation of buffering roles in an organization can have both pros and cons.
Pro arguments for the creation of buffering roles include:
1. Conflict resolution: Buffering roles can help to mediate conflicts between different departments or teams within an organization. By acting as a neutral party, buffering roles can help to find common ground and facilitate communication and collaboration.
2. Improved communication: Buffering roles can help to improve communication between different levels of the organization. They can act as a bridge between upper management and front-line employees, ensuring that important information is effectively communicated and understood.
3. Reduced stress: Buffering roles can help to reduce stress and workload for upper management by handling certain tasks and responsibilities, allowing them to focus on more strategic and high-level decision making.
Con arguments against the creation of buffering roles include:
1. Increased bureaucracy: Introducing buffering roles can lead to increased bureaucracy and red tape within the organization. This can slow down decision-making processes and hinder agility and responsiveness.
2. Lack of accountability: Buffering roles may create a lack of accountability, as individuals in these roles may become a buffer for responsibility and accountability, leading to a diffusion of responsibility.
3. Potential for conflict of interest: Buffering roles may create a potential for conflict of interest, as individuals in these roles may prioritize their own interests or the interests of their department over the overall goals of the organization.
In conclusion, while the creation of buffering roles can have benefits such as conflict resolution and improved communication, it also comes with potential drawbacks such as increased bureaucracy and lack of accountability. It is important for organizations to carefully consider the potential impact of introducing buffering roles and to implement them in a way that maximizes their benefits while minimizing their drawbacks.
What methods are suggested for dealing effectively with resource dependence?
Resource dependence theory posits that organizations are dependent on resources that are often beyond their control because these resources are typically in the hands of other organizations or stakeholders. To deal effectively with resource dependence, organizations can adopt several strategies:
1. Diversification of Resource Base: Organizations can reduce dependence on any single resource by diversifying their sources. This can involve finding multiple suppliers, developing alternative resources, or changing the resource mix to reduce vulnerability to supply disruptions.
2. Vertical Integration: By acquiring or merging with suppliers or distributors, an organization can gain more control over its resources and supply chain. This can reduce uncertainty and improve the flow of critical resources.
3. Joint Ventures and Strategic Alliances: Forming partnerships with other organizations can provide access to necessary resources without the need for full ownership or control. This can also facilitate the sharing of risks associated with resource acquisition and utilization.
4. Political Action: Organizations can engage in lobbying or other forms of political activity to influence the legal and regulatory environment in ways that favor their access to resources.
5. Contractual Agreements: Long-term contracts with suppliers can secure access to resources and stabilize prices, reducing the uncertainty associated with resource availability.
6. Investment in Resource Development: Organizations can invest in research and development to create substitutes for critical resources or to improve the efficiency of resource use, thereby reducing overall dependence.
7. Buffering and Smoothing: Organizations can maintain a buffer stock of critical resources to smooth out fluctuations in availability. This can involve stockpiling resources or maintaining a reserve fund to purchase resources when needed.
8. Adaptation: Organizations can adapt their operations and strategies to become less dependent on certain resources. This might involve changing business models, product lines, or operational processes to reduce vulnerability.
9. Networking: Building a strong network of relationships with other organizations, including suppliers, customers, and even competitors, can provide more options and flexibility in accessing resources.
10. Monitoring and Forecasting: Keeping a close eye on the market and predicting future trends can help organizations anticipate resource challenges and take proactive measures to mitigate them.
By employing a combination of these strategies, organizations can better manage their resource dependencies and reduce the risks associated with resource scarcity or control by external entities.
Rather than establish buffer departments, a newer approach in many organizations is to drop the buffers and expose the technical core to its uncertain environment.
The ____ includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it.
An interlocking directorate is a formal linkage that occurs when a member of the board of directors of one company sits on the board of directors of another company.
The socio-cultural sector refers to city, state, federal laws and regulations, taxes, courts systems, and political processes that may be in an organization's environment.
List and give examples of each of the general environment sectors.
The purpose of task roles is to absorb uncertainty from the environment.
Sectors of the environment which have direct impact on the organization are called the:
As part of the "green movement," Nike began making shoes with recycled materials and eco-friendly glues. The big oil company Valero is using windmills to run its refineries more efficiently and produce petroleum-based fuels more easily. These examples belong to which sector of the general environment?
The organizational environment is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization.
In rapidly changing environments, an organic structure is usually better.
The greatest uncertainty for an organization occurs in the simple, unstable environment.
Distinguish between complexity and instability in an organization's environment.
An organization's domain is the chosen environmental field of action, or the organization's niche that has been staked out for itself with respect to products, services, and markets served.
____ is a way that high uncertainty influences organizational characteristics.
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