Management
Session 3
An Organisation’s Internal &
External Environment
Learning Objectives

1。Discuss the diversity and ambiguity of the
environment in which managers operate.(管理者
管理中会遇到哪些的环境？）
 2。Understand two types of external
environment.(2.1组织有哪两种外部环境?2.2请具
体说明STEPI analysis； Task Environment – 5
elements。2.3有哪两种分析组织与环境的方法？2.4环境
有哪四种特征？2.5管理环境有哪三种方法？)。
3。Understand the organisation’s internal
environment.（3.1举例说明什么是内部环境？3.2
什么是组织文化，会受什么因素影响？3.3如何划
分文化有类型？3.4领导者是如何影响文化的？）
 4。Analyse an organisation using SWOT（举例
Apr-15
2
说明什么是SWOT分析）

How do you think or behave during a time of
uncertainty – answer mostly true / mostly false:








1.Enjoy hearing about new ideas even when working to a
deadline
2.Welcome unusual viewpoints from others even if we are
working under pressure
3.Make it a priority to attend company & industry events
4.Specifically encourage others to express opposing ideas &
arguments
5.Ask ‘dumb’ questions
6.Always offer comments on meaning of data or issues
7.Express a controversial opinion to your boss & peers
8.Suggest ways of improving my & others’ way of doing
things
Samson, Catley, Cathro, Daft, 2012
Organisation’s Internal & External
Environment

Managers are faced with diversity & ambiguity in
the environment in which they operate

External Environment
• Mega-environment
• Task environment

Internal Environment
• Organisational culture
Apr-15
4
External Environment

Being aware of (知道）trends & variables in
external environment, that have potential to
impact on organisation, is critical for managers
concerned for future of their organisation.
 These factors must be taken into account in
strategic & business planning.
Apr-15
5
External Environment
‘Major forces outside organisation with
potential to significantly influence likely
success of a product or service’.
External environment is made up of:
Mega-environment
Broad conditions & trends in societies in
which an organisation operates.
Task environment
Specific outside elements with which an
organisation interacts in course of
conducting its business.
Apr-15
6
Mega-environment – STEPI
Broad conditions & trends in societies in
which an organisation operates.





Apr-15
Socio-culture element
Technological element
Economic element
Political-legal element
International element
7
STEPI analysis

Socio-cultural:
 Demographic factors
Characteristics of population: geographic area,
age, gender, income, education, stage in family
lifecycle
 Psychographic factors
Peoples’ attitudes, values, norms, beliefs, lifestyle
& behaviours – these factors / trends particularly
useful for organisations selling goods to
consumer market
Apr-15
8
STEPI analysis

Technological:
Factors / trends involving current ‘state of knowledge’
regarding production of products / services
 Economic:
Trends / variable associated with system of
producing, distributing & consuming wealth – at
national & local levels
 Interest rates, exchange rates, recession （经济衰
退）or ‘boom’ （繁荣）period, level of employment
STEPI analysis

Political & legal:
Laws, regulations & governmental systems within
which organisations must function – & political
interest groups that affect it. Managers should
consider law changes, government changes,
pressure groups at national & local level
 International:
Developments in countries outside an
organisation’s home country with potential to
influence the organisation
Apr-15
10
Task Environment
Specific outside elements with which an
organisation interacts in course of
conducting its business Competitors
Government and regulators
Customers/clients
The
Organisation
The employment market
Apr-15
Suppliers
11
Task Environment – 5 elements:
1.
2.
3.
4.
5.
Apr-15
Customer & clients
Individuals & organisations purchasing an
organisation’s product / services
Competitors
- Other organisations offering / high potential to offer
rival products / services
Suppliers
- Of resources organisation needs to operate
Labour supply
- People potentially employable by organisation
Government agencies
- Providing services & monitoring compliance
12
Analysing environmental conditions
Two Views of organisation / environmental
relationship
1.
Population ecology model
 Argues that environmental factors cause
organisations with appropriate characteristics
to survive & others fail
2.
Resource dependence model
 Sees organisations as being dependent on
environment for resources, arguing they try to
manipulate environment to reduce dependence
Apr-15
13
Analysing environmental conditions
Four characteristics of the environment:
1. Environmental uncertainty
- An organisation’s future environment can’t be
accurately predicted
2. Complexity
- Number of elements in an organisation's
environment & their degree of similarity
3. Dynamism
- Rate & predictability of change in elements of an
organisation’s environment – stable vs unstable?
4. Environmental bounty
- Extent to which environment can support
sustained growth & stability – rich vs lean（贫
瘠）?
Apr-15
14
Managing environmental elements
Three approaches:
Adaptation
Changing internal operations & activities to make
organisation & its environment more compatible:
buffering, smoothing, forecasting, rationing（配给）
Favourable influence
Trying to alter（修改） environmental
elements to make them more compatible
with organisation’s needs: promotion,
recruiting（充实）, negotiate （协商）contracts
Domain shifts（改变）
Changing product / service mix to
create favourable relationship – move
or diversify（进入新的商业领域）
Apr-15
15
Managing environmental elements

Adaption:
 Buffering（缓冲） – Stockpiling（贮存）
inputs or outputs to overcome environmental
variations
 Smoothing – Acting to reduce impact of
market fluctuations – discounts & sales
 Forecasting – Predicting important conditions
& future events
 Rationing – Limiting access to high demand
product / service
Apr-15
16
Managing environmental elements

Favourability influence:
 Advertising & public relations – environment
can be influenced by promotional activities
 Boundary spanning – Creating roles within
organisation to deal specifically with major
environmental elements
 Recruiting – Selecting candidates who will be
able to understand & interact with
environment
 Negotiating contracts – Specific customer &
supplier agreements can create
environmental favourability
Apr-15
17
Managing environmental elements

Favourability influence:
 Co-opting – Getting right people with right
skills to deal with environment
 Strategic alliances – Co-operative
partnerships
 Trade associations – Organisations (or
individuals) with common business interests
 Political activity – Influencing legislation
Apr-15
18
Internal Environment
– Organisational culture
Conditions & forces within organisation
– over which organisation has control, e.g.
Culture
 Marketing
 Finance
 Human Resources

Apr-15
19
Organisational Culture

Values, beliefs, assumptions about appropriate
behaviour that members of an organisation share
 ‘the way we do things around here’
 Influenced by:
• Founding members of organisation
• Current management & other ‘heroes’ – their
imagination & drive
• Recruitment & reward systems
• Formal statements, procedures, physical
setting
• External environment
Apr-15
20
Indicators of organisation’s culture
Symbols（标志，符号） – object, act, event,
words & slogans used within organisation that
convey meaning
 Stories – Based on actual events (good & bad),
may be elaborated to highlight intended value
 Rites （仪式）& ceremonies（典礼） – An
occasion（场合） or event

Apr-15
21
Power of Organisation Culture
 Culture serves two important functions:
Creates internal unity
Helps organisation adapt to external environment
 Impact of culture depends on degree to which:
Culture supports achievement of organisational
objectives
Set of norms（标准，规范，准则） & values are
widely shared among staff
These values are strongly held throughout
organisation
Cultural Types

Strong vs weak cultures
Strong – deeply rooted – key values & norms are
widely shared & strongly held by staff in org.
Weak – shallow rooted – where there is lack of
agreement on these values
 Unhealthy cultures
Highly politicised, hostile（敌对）to change or
new ways of doing things, over-confident – due
to past success
Such organisations may lose sight of events in
their market & can face problems in dynamic
environment
Apr-15
23
How leaders influence cultural
change

Leadership can be critical（关键，决定性）:
 Typically, they convince（使确信）
members a crisis has occurred or is likely to
occur
 Next they communicate（成就） vision of
a new direction & strategy – including
cultural changes
 Finally they motivate others to lead
implementation of vision & corresponding
（对应） strategy
Apr-15
24
S.W.O.T

Inside the
Organisation
 Resources
& capabilities

Outside the
Organisation
 Conditions
& trends
 Strengths
 Opportunities
 Weaknesses
 Threats
Apr-15
25
SWOT Analysis

Inside the organisation
• Strengths & Weakness within your group?
• Strengths?
• Eg: How many languages within group? What
age range do you have? What cultures are
represented? What resources do you have?
What skills / experience do you have:
technology, accounting, people, marketing,
relevant technical?
• Weaknesses?
• What is missing? What might you need to be
successful?
Apr-15
26
SWOT Analysis

Outside the organisation…




Apr-15
What are the opportunities?
What is happening outside your group that would
provide an opportunity for you as an individual or
your ‘organisation’ to grow?
What are the threats?
What is happening outside your group that would
limit or stop you as an individual or your
‘organisation’ growing?
27
课后作业
 选择一名管理者进行调查
Think of a specific job you’ve had. What is your
perception of managers above you in that job.
For each statement, answer:
5 – Strongly agree
4 – Agree
3 – Neither agree or disagree
2 – Disagree
1 – Strongly disagree
Samson, Catley, Cathro, Daft, 2012
1.
2.
3.
4.
5.
6.
Good ideas get serious consideration from
managers above me.
Managers above me were interested in ideas &
suggestions from people like me in the
organisation.
When suggestions were made to managers
above me, they received fair evaluation.
Managers did not expect me to challenge or
change the status quo（现状 ）.
Managers specifically encouraged me to bring
about improvements in my workplace.
Managers took action on recommendations
made from people at my level.
Managers rewarded me for correcting problems.
8. Management clearly expected me to improve
work unit procedures & practices.
9. I felt free to make recommendations to
managers above me to change existing
practices.
10. Good ideas did not get communicated upwards
because managers were not very approachable.
Subtract your scores for Q’s 4 & 10 from 6.
Now add all scores, then divide by 10 = average
Adaptive culture shaped by values & actions of
management – Q’aire indicates management’s
openness to change – typical av score = 3
7.