Lecture 2

Question 1

Organization

Answer 1

a social entity that is goal directed, and deliberately structured & coordinated, and linked to the environment

Question 2

Organizational Domain

Answer 2

The organization’s niche within the environment

Question 3

Organizational Environment

Answer 3

all elements outside the boundary of the organization that have the potential to affect the organization

Question 4

Environmental Sectors

Answer 4

subdivisions of the environment that group similar elements; task and general

Question 5

task environment

Answer 5

“core” environment; direct impact
a) Industry sectors
b) Raw materials sectors
c) Human resources sectors
d) Market sectors
e) International sectors (customs, rules, exchange rates)

Question 6

general environment

Answer 6

everything else; indirect impact
a) Government sector
b) Sociocultural sector
c) Technology sector
d) Financial resources sector
e) Economic conditions sector
International Context
o All domestic sectors can be affected

Question 7

Framework for Assessing Environmental Uncertainty

Answer 7

• Simple – Complex: Number of different factors/forces
• Stable – Unstable: Rate of change or degree of predictability of change (e.g. change rapidly)

Question 8

Differentiation

Answer 8

the differences in cognitive orientations, goals, structure, and interpersonal orientation among managers in different departments.

– Departments become specialized and highly tailored to the needs of their individual external sub-environments.

Question 9

Integration

Answer 9

= the quality of collaboration that is achieved between those departments.
– Extensive integration is required to coordinate the changes taking place in various sub-environments.

Question 10

Mechanistic Processes

Answer 10

Rigid, bureaucratic
Centralized
Specialized, separate tasks
Rigidly defined
Many rules; highly formalized
Strict hierarchy
Centralized at the top
Vertical
Narrow, specialized roles
Through hierarchy and rules
Efficiency
Stable environment
Large manufacturing firm

Question 11

Organic Processes

Answer 11

Loose, collegial, free-flowing
Decentralized
Broad, shared tasks
Continuously adjusted and redefined
Few rules; informal
Little hierarchy
Distributed throughout organization
Horizontal (lateral)
Empowered, flexible roles
Through teamwork and collaboration
Learning, adaptation, innovation
Changing/uncertain environment
Tech start-up

Question 12

Resource dependence

Answer 12

when an organization depends on the environment for resources.

Question 13

Controlling Resources (Inter-organizational Linkages)

Answer 13

Ownership (acquisition or merger)
Formal strategic alliances
Cooptation; interlocking directorates
Executive recruitment
Advertising & PR

Question 14

Controlling the Environmental Domains

Answer 14

Change domain (niche)
Political lobbying
Trade association
Illegitimate activities

Question 15

Cooptation

Answer 15

the process where powerful groups absorb potential threats or outsiders by bringing them into leadership or decision-making roles, often to neutralize opposition, maintain stability, or co-opt their ideas (hiring an activist that is opposing your product)

Question 16

Interlocking Directorates

Answer 16

when the same person serves on the board of directors for two or more companies, creating a link between them (competing companies in Canada can’t do this)