Hierarchical Environment .


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Authoritative Environment. Hierarchical environment: set of forces encompassing an association May influence its operation and access to rare assets Authoritative area: the reach of products and administrations that the association produces, and the clients and other
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Hierarchical Environment Organizational condition: set of forces encompassing an association May influence its operation and access to rare assets Organizational space: the range of products and enterprises that the association produces, and the clients and different stakeholders whom it serves

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The Organizational Environment International Forces Demographic/Cultural Forces Political Forces Customers Distributors Suppliers Organization Unions Government Competitors Environmental Forces Technological Forces Economic Forces General Forces Specific Forces

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Two Women Boxing Environment Initially Now Domain Initially Now What parts of their condition require adjustment inside their association?

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Sources of Environmental Uncertainty complexity, dynamism, and abundance As the earth turns out to be more complex, less steady, and poorer, the level of vulnerability increments.

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Organization Theory Contingency hypothesis: to deal with its condition viably, an association ought to outline its structure to fit its condition. Fit with condition decides achievement.

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Dealing with Uncertainty When the earth is insecure and unverifiable, associations are more powerful if their structures are: Less formalized More decentralized More dependent on common conformity

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Ideal Relationship Between Environmental Uncertainty and Organizational Structure Low Environmental Uncertainty High Mechanistic Structure Low separation Low combination Centralized basic leadership Standardization Organic Structure Complex structure High separation High incorporation Decentralized basic leadership Mutual modification

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Resource Dependence Theory The objective of an association is to: Minimize its reliance on others for rare, basic, nonsubstitutable assets Influence others to give assets

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Dilbert on Resource Dependence

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FIGURE 6.6 Interorganizational Strategies for Managing Symbiotic Interdependencies Informal Formal Reputation Co-optation Strategic cooperations Merger and takeover

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FIGURE 6.10 Interorganizational Strategies for Managing Competitive Interdependencies Informal Formal Collusion and cartels Third-party linkage components Strategic unions Merger and takeover

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Transaction Cost Theory Transaction costs: the expenses of arranging, checking, and administering trades between individuals Transaction expenses are low when: Exchanges are nonspecific Uncertainty is low There are numerous conceivable trade accomplices

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Transaction Cost Theory Organizations embrace progressively formal linkage systems with their trade accomplices as exchange costs increment. These instruments likewise convey bureaucratic expenses inside the association.

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A Few Good Men Describe the earth for American military associations. What is their motivation? List their asset conditions.

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