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BUSM112 - CH 02

CH 02 : The Management Environment

External Environment Factors, forces, situations, and events outside the organization that affect its performance.
Omnipotent View of Management The view that managers are directly responsible for an organization's success or failure.
Symbolic View of Management The view the much of an organization's success or failure is due to external forces outside managers' control.
Demographics The characteristics of a population used for purposes of social studies.
Technology Any equipment, tools, or operating methods that are designed to make work more efficient.
Environmental Uncertainty The degree of change and complexity in an organization's environment.
Environmental Complexity The number of components in an organization's environment and the extent of knowledge that the organization has about those components.
Stakeholders Any constituencies in an organization's environment that are affected by the organization's decisions and actions.
Organizational Culture The shared values, principles, traditions, and ways of doing things that influence the way organizational members act.
Strong Cultures Cultures in which the key values are deeply held and widely shared.
Managerial Decisions Affected by Culture Planning, organizing, leading and controlling.
Explain What the External Environment is Refers to factors, forces, situations, and events outside the organization that affects its performance. Includes economic, demographic, political/legal, sociocultural, technological and global components.
Why is the External Environment Important? It poses constraints and challenges to managers.
Describe the Three Ways the External Environment Affects Managers Its impact on jobs & employment, the amount of environmental uncertainty and the nature of stakeholder relationships.
Define Organizational Culture and Its Importance The shared values, principles, traditions, and ways of doing things that influence the way organizational members act. It's important because of the impact it has on decisions, behaviors and actions of organizational employees.
Describe How Organizational Culture Affects Managers Organizational culture affects managers in two ways: through its effect on what employees do and how they behave; and through its effect on what managers do as they plan, organize, lead and control.
Created by: slk



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