ENVIRONMENTAL

CONTROLLING
Controlling Environment
 Provides many benefits. A growing body of
research show strong links between degree
of environmental control, employee
performance and business outcomes.
2 Categories of controlling the environment
• Creating Faborable Linkages
 Is the objective of reducing the environmental
uncertainty.

• Manipulating the Environment

 Organization may attempt to manipulate the
environment by using any or all of the following.
A. Mergers
 Is a move and it constitutes a method for controlling the
environment.

B. Joint Ventures
 A method of reducing environmental uncertainty is called
joint ventures.
C. Interclocking Directionates
 When some members of the board of directions of one
company are also members of the board of another
company, such arrangement is called interclocking
directionates.
D. Executive Recruitment
 Companies hire executive who have prior experience in
the industry.
E. Institutional Advertising
 This type of advertising is designed to build goodwill for a
company among stockholders, employees, distributors, the
public, and the government.

F. Resource Flows
 This term refers to the pattern of resource exchanges
between the organizations in the environment.
2 Options under the Resource Flows

1. Frequancy of Exchanges

2. Quantity Involved in the Exchanges

 Manipulating the Environment
A. Changing Elements.
 A business organization may seek to manipulate its
environment by changing one or more environmental
elements in which it operates.
B. Lobbying
 Refers to the act of attempting to influence business and
government to create legislation or conduct an activity that
will help a particular organization.
C. Forming Trade Associatioons
 One way of manipulationg the environment is through
trade associations, which are composed of members
organizations that share a common interest.
 Trade associations existing in the Philippines.
I. Philippine Petroleum Sea Transport Associations, Inc.
II. Association of Petrochemical Manufacturers of the
Philippines
III. Cement Mannufacturers Association of the Philippines
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