Professional Documents
Culture Documents
The view is labeled “symbolic” because it’s based on the belief that
managers symbolizes control and influence.
The External Environment
Constraints and Challenges
EXTERNAL ENVIRONMENT
It refers to the factors and forces outside the organization that affect its performance.
Economic Component: interest rates, inflation, changes in disposable income, stock
market fluctuations, and business cycle.
Demographic Component: age, race, gender, education level, geographic location,
income, and family composition.
Political/legal Component: state and local laws, political conditions and stability
Sociocultural Component: values, attitudes, trends, traditions, lifestyles, beliefs, tastes
and pattern of behaviors
Technological Component: scientific and industrial innovations.
Global Component: issues associated with globalization and world economy.
Components of External Environment
How the External Environment Affects
Managers
1. IMPACT ON JOBS AND EMPLOYMENT
ENVIRONMENTAL COMPLEXITY
It looks at the number of components in an organization’s
environment and the extent of the knowledge that the
organization has about those components.
Environmental Uncertainty Matrix
Organizational Stakeholders
Stakeholders are any
constituents in the
organization’s
environment that
are affected by an
organization’s
decisions and
actions.
Organizational Culture
Constraints and Challenges
ORGANIZATIONAL CULTURE
It has been described as the shared values, principles, traditions, and
ways of doing things that influence the way organizational members act.