15.2 External Environments and Industries - Organizational Behavior | OpenStax
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Organizational Behavior15.2 External Environments and Industries
Organizational Behavior15.2 External Environments and Industries
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Table of contents
Preface
1 Management and Organizational Behavio
Introduction
1.1 The Nature of Work
1.2 The Changing Workplace
1.3 The Nature of Management
1.4 A Model of Organizational Behavior and Management
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Critical Thinking Case
2 Individual and Cultural Differences
Introduction
2.1 Individual and Cultural Factors in Employee Performance
2.2 Employee Abilities and Skills
2.3 Personality: An Introduction
2.4 Personality and Work Behavio
2.5 Personality and Organization: A Basic Conflict?
2.6 Personal Values and Ethics
2.7 Cultural Differences
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
3 Perception and Job Attitudes
Introduction
3.1 The Perceptual Process
3.2 Ba
iers to Accurate Social Perception
3.3 Attributions: Interpreting the Causes of Behavio
3.4 Attitudes and Behavio
3.5 Work-Related Attitudes
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
4 Learning and Reinforcement
Introduction
4.1 Basic Models of Learning
4.2 Reinforcement and Behavioral Change
4.3 Behavior Modification in Organizations
4.4 Behavioral Self-Management
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
5 Diversity in Organizations
Introduction
5.1 An Introduction to Workplace Diversity
5.2 Diversity and the Workforce
5.3 Diversity and Its Impact on Companies
5.4 Challenges of Diversity
5.5 Key Diversity Theories
5.6 Benefits and Challenges of Workplace Diversity
5.7 Recommendations for Managing Diversity
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
6 Perception and Managerial Decision Making
Introduction
6.1 Overview of Managerial Decision-Making
6.2 How the Brain Processes Information to Make Decisions: Reflective and Reactive Systems
6.3 Programmed and Nonprogrammed Decisions
6.4 Ba
iers to Effective Decision-Making
6.5 Improving the Quality of Decision-Making
6.6 Group Decision-Making
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
7 Work Motivation for Performance
Introduction
7.1 Motivation: Direction and Intensity
7.2 Content Theories of Motivation
7.3 Process Theories of Motivation
7.4 Recent Research on Motivation Theories
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
8 Performance Appraisal and Rewards
Introduction
8.1 Performance Appraisal Systems
8.2 Techniques of Performance Appraisal
8.3 Feedback
8.4 Reward Systems in Organizations
8.5 Individual and Group Incentive Plans
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
9 Group and Intergroup Relations
Introduction
9.1 Work Groups: Basic Considerations
9.2 Work Group Structure
9.3 Managing Effective Work Groups
9.4 Intergroup Behavior and Performance
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
10 Understanding and Managing Work Teams
Introduction
10.1 Teamwork in the Workplace
10.2 Team Development Over Time
10.3 Things to Consider When Managing Teams
10.4 Opportunities and Challenges to Team Building
10.5 Team Diversity
10.6 Multicultural Teams
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
11 Communication
Introduction
11.1 The Process of Managerial Communication
11.2 Types of Communications in Organizations
11.3 Factors Affecting Communications and the Roles of Managers
11.4 Managerial Communication and Corporate Reputation
11.5 The Major Channels of Management Communication Are Talking, Listening, Reading, and Writing
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
12 Leadership
Introduction
12.1 The Nature of Leadership
12.2 The Leadership Process
12.3 Leader Emergence
12.4 The Trait Approach to Leadership
12.5 Behavioral Approaches to Leadership
12.6 Situational (Contingency) Approaches to Leadership
12.7 Substitutes for and Neutralizers of Leadership
12.8 Transformational, Visionary, and Charismatic Leadership
12.9 Leadership Needs in the 21st Century
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
13 Organizational Power and Politics
Introduction
13.1 Power in Interpersonal Relations
13.2 Uses of Powe
13.3 Political Behavior in Organizations
13.4 Limiting the Influence of Political Behavio
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
14 Conflict and Negotiations
Introduction
14.1 Conflict in Organizations: Basic Considerations
14.2 Causes of Conflict in Organizations
14.3 Resolving Conflict in Organizations
14.4 Negotiation Behavio
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
15 External and Internal Organizational Environments and Corporate Culture
Introduction
15.1 The Organization's External Environment
15.2 External Environments and Industries
15.3 Organizational Designs and Structures
15.4 The Internal Organization and External Environments
15.5 Corporate Cultures
15.6 Organizing for Change in the 21st Century
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
16 Organizational Structure and Change
Introduction
16.1 Organizational Structures and Design
16.2 Organizational Change
16.3 Managing Change
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
17 Human Resource Management
Introduction
17.1 An Introduction to Human Resource Management
17.2 Human Resource Management and Compliance
17.3 Performance Management
17.4 Influencing Employee Performance and Motivation
17.5 Building an Organization for the Future
17.6 Talent Development and Succession Planning
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
18 Stress and Well Being
Introduction
18.1 Problems of Work Adjustment
18.2 Organizational Influences on Stress
18.3 Buffering Effects of Work related Stress
18.4 Coping with Work related Stress
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Critical Thinking Case
19 Entrepreneurship
Introduction
19.1 Overview of Entrepreneurship
19.2 Characteristics of Successful Entrepreneurs
19.3 Business Model Canvas
19.4 New Venture Financing
19.5 Design Thinking
19.6 Optimal Support for Entrepreneurship
Key Terms
Summary of Learning Outcomes
Chapter Review Questions
Management Skills Application Exercises
Managerial Decision Exercises
Critical Thinking Case
A | Scientific Method in Organizational Research
B | Scoring Keys for Self-Assessment Exercises
References
Index
Identify contemporary external forces pressuring organizations.
Industry and organizational leaders monitor environments to identify, predict, and manage trends, issues, and opportunities that their organizations and industries face. Some corporations, such as Amazon, anticipate and even create trends in their environments. Most, however, must adapt. External environments, as identified in the previous section, can be understood by identifying the uncertainty of the environmental forces. Exhibit 15.4 illustrates a classic and relevant depiction of how scholars portray environment-industry-organization “fit,” that is, how well industries and organizations align with and perform in different types of environments.
Exhibit 15.4 Company Industry Fit Adapted from: Duncan, R XXXXXXXXXXCharacteristics of organizational environments of uncertainty. American Science Quarterly, 17 (September), XXXXXXXXXX; Daft, R. Organizational Theory and Design, 12th edition, p. 151, Mason, OH, Cengage Learning.
The two dimensions of this figure represent “environmental complexity” (i.e., the number of elements in the environment, such a competitors, suppliers, and customers), which is characterized as either simple or complex, and “environmental change,” described as stable or unstable. How available monetary and financial resources are to support an organization’s growth is also an important element in this framework.17 Certain industries—soft drink bottlers, beer distributors, food processors, and container manufacturers—would, hypothetically, fit and align more effectively in a stable (i.e., relative unchanging), simple, and low-uncertainty (i.e., has mostly similar elements) external environment—cell 1 in Exhibit 15.4. This is refe
ed to when organizations are in a simple-stable environment. Of course unpredicted conditions, such as global and international turmoil, economic downturns, and so on, could affect these industries, but generally, these alignments have served as an ideal type and starting point for understanding the “fit” between environment and industries. In a stable but complex, low- to moderate-uncertainty environment, cell 2 in Exhibit 15.4, universities, appliance manufacturers, chemical companies, and insurances companies would generally prosper. This is refe
ed to when organizations are in a complex-stable environment. When the external environment has simple but high to moderate uncertainty, cell 3 of Exhibit 15.4, e-commerce, music, and fashion clothing industries would operate effectively. This is refe
ed to when organizations are in a simple-unstable environment. Whereas in cell 4 of Exhibit 15.4, an environment characterized by a high degree of uncertainty with complex and unstable elements, industries and firms such as computer, aerospace, airlines, and telecommunications firms would operate more effectively. This is refe
ed to when organizations are in a complex-unstable environment.
Exhibit 15.4 is a starting point for diagnosing the “fit” between types of external environments and industries. As conditions change, industries and organizations must adapt or face consequences. For example, educational institutions that traditionally have been seen to operate best in low- to moderate-uncertainty environments, cell 2 of Exhibit 15.4, have during this past decade experienced more high to moderate uncertainty (cell 3)—and even high uncertainty (cell 4). For example, for-profit educational institutions such the University of Phoenix and others—as compared to not-for-profit universities and colleges, such as public state institutions, community colleges, and private nonprofit ones—have undergone more unstable and complex forces in the external environment over the past decade. Under the Obama administration, for-profit universities faced greater scrutiny regarding questionable advertising, graduation rates, and accreditation issues; lawsuits and claims against several of these institutions went forward, and a few of the colleges had to close. The Trump administration has shown signs of alleviating aggressive governmental control and monitoring in this sector. Still, higher educational institutions in general cu
ently face increasingly complex and unstable environments given higher tuition rates, increased competition from less-expensive and online programs, fewer student enrollments, and an overabundance of such institutions. Several private, not-for-profit higher educational institutions have merged and also ceased to exist. Adapting to increasingly rapid external change has become a rallying call for most industries and organizations as the 21st century evolves.
Organizational Complexity
It is important to point out here that external (and internal) organizational complexity is not often as simple as it may seem. It has been defined as “…the amount of complexity derived from the environment where the organisation operates, such as the country, the markets, suppliers, customers and stakeholders; while internal complexity is the amount of complexity that is internal to the organisation itself, i.e. products, technologies, human resources, processes and organisational structure. Therefore, different aspects compose internal and external complexities.”18
The dilemma that organizational leaders and managers sometimes face is how to deal with external, and