Organizational Behaviour
Ninth edition
Chapter 02
Environment
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Environment
Environment: issues, trends, and events outside
the boundaries of the organization, which influence
internal decisions and behaviours.
Stakeholders: anyone who is concerned with how
an organization operates, and who will be affected
by its decisions and actions.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Figure 2.1
External environment–organization links
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
The Search for ‘Fit’
Environmental uncertainty: the degree of
unpredictable turbulence and change in the
political, economic, social, technological legal, and
ecological context in which an organization
operates.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Environmental Complexity &
Dynamism
Environmental complexity: the range of external
factors relevant to the activities of the organization;
the more factors the higher the complexity.
Environmental dynamism: the pace of change in
relevant factors external to the organization; the
greater the pace of change, the more dynamic the
environment.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Figure 2.2
Duncan’s typology of organizational
environments
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Table 2.1
Ansoff’s typology of environments
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Figure 2.3
The search for environment–organization
‘fit’
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
The search for environment–
organization ‘fit’
Post-modern organization: a networked,
information-rich, delayered, downsized, boundary-
less, high commitment organization employing
highly skilled, well-paid autonomous knowledge
workers.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
The search for environment–
organization ‘fit’ (flaws)
Environmental determinism: the argument that
internal organizational responses are primarily
determined by external environmental factors.
Strategic choice: the ability of an organization to
decide on the environment, or environments-that
is, sectors, and parts of the world-in which it will
operate.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Analyzing the Organization’s
Environment
Environmental scanning: techniques for
identifying and predicting the impact of external
trends and developments on the internal
functioning of an organization.
Globalization: the intensification of worldwide
social and business relationships which link
localities in such a way that local conditions are
shaped by distant events.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Percentage of UK population aged 65 or
over
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Average age of UK population
scanning
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
PESTLE Analysis
PESTLE analysis: an environmental scanning tool
identifying Political, Economic, Social,
Technological, Legal, and Ecological factors that
affect an organization.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Figure 2.4
PESTLE analysis
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Scenario Planning
Scenario planning: the imaginative development
of one or more likely pictures of the dimensions
and characteristics of the future for an
organization.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Figure 2.5
External environment–organization link
detailed
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Figure 2.6
Three domains of action
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Ethics
Ethics: the moral principles, values, and
rules that govern our decisions and actions
with respect to what is right and wrong, good
and bad.
Ethical frameworks: utilitarianism,
individual rights, and natural justice.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Table 2.3
Ethical frameworks
Source: adapted from Organizational Dynamics, Vol. 12, No. 2, Velasquez, M., Moberg, D.J. and Cavanagh, G.F., Organizational statesmanship and dirty politics: ethical guidelines for
the organizational politician, p. 72, © 1983, with permission from Elsevier.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Business Ethics
Ethical stance: the extent to which an
organization exceeds its legal minimum obligations
to its stakeholders and to society at large.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Figure 2.8 Intensity of ethical
stance
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
Corporate Social
Responsibility
Corporate Social Responsibility (CSR): the
view that organizations should act ethically, in
ways that contribute to economic development,
the environment, quality of working life, local
communities, and the wider society.
Copyright © 2017, 2014, 2011 David A. Buchanan and Andrzej A. Huczynski. All Rights Reserved
