Professional Documents
Culture Documents
Lesson 4.12
ANALYZING ORGANIZATIONAL ENVIRONMENT AND UNDERSTANDING
ORGANIZATIONAL CULTURE
This lecture discusses the components and complexities of an organization’s culture and the external
/internal environment and how these may constrain managers. Managers are also responsible for improving
stakeholder involvement in decisions making and actions taking. Managers must be aware that
organizational culture and organizational environments will influence both the way an organization is
managed as well as its effectiveness. How can an understanding of organizational culture and the external
environment help the manager? Let us learn.
THE ENVIRONMENT:
The impact of the external environment on a manager’s actions and behaviors cannot be overemphasized.
There are forces in the environment that play a major role in shaping managers’ endeavors
The environment is defined as outside institutions and forces outside the organization that potentially
affect an organization’s performance.
Types of Environment:
1) External Environment
2) Internal Environment
External Environment
‘Major forces outside the organisation with potential to influence significantly a product or
service’s likely success is called its external environment.’
The insights derived from systems theory have helped to highlight the importance of a managed interaction
between an organization and its external environment. Two major divisions have been made in the external
environment:
d. People orientation (the degree to which management decisions take into consideration the effect on
people within the organization)
e. Team orientation (the degree to which work activities are organized around teams rather than
individuals)
f. Aggressiveness (the degree to which people are aggressive and competitive rather than easygoing
and cooperative)
g. Stability (the degree to which organizational activities emphasize maintaining the status quo in
contrast to growth)Employees “learn” an organization’s culture in different ways.
1. Organizational stories are one way that employees learn the culture. These stories typically involve a
narrative of significant events or people.
2. Rituals are repetitive sequences of activities that express and reinforce the key values of the
organization, what goals are most important, which people are important.