Chapter 4: The
External Environment
Vocabulary
Sectors
Management
Processes
10
10
10
10
20
20
20
20
30
30
30
30
40
40
40
Agree/
Disagree
40
Vocabulary - 10
• Everything that exists outside the boundary of
the organization and has the potential to
affect all or part of the organization
Vocabulary – 10
• Organizational environment
Vocabulary - 20
• chosen environmental field of actions
Vocabulary – 20
• Domain
Vocabulary - 30
• absorb uncertainty from the environment
Vocabulary – 30
• Buffering roles
Sectors - 10
• this sector includes parts such as city, state,
federal laws and regulations
Sectors – 10
• Government sector
Sectors - 20
• this sector includes suppliers, manufactures,
real estate, and services
Sectors – 20
• Raw materials sector
Sectors - 30
• This sectors include parts such as age, value,
beliefs, education, religion, work ethic, and
consumer movements
Sectors – 30
• Sociocultural sector
Management Processes - 10
• Rapidly changing environments, the internal
organization was much lesser, free flowing,
and adaptive
Management Processes – 10
• Organic structure
Management Processes - 20
• internal organization characterized by
standard rules, procedures, a clear hierarchy
of authority, and formalization
Management Processes – 20
• Mechanistic
Management Processes - 30
• decentralized structure is to ___________ as
centralized is to ___________ structure
Management Processes – 30
• Organic and mechanistic
Agree and Disagree- 10
• The best way for an organization to cope with
a complex environment is to develop a
complex structure
Agree and Disagree – 10
• Agree-as an organization’s environment
becomes more complex, the organization has
to add jobs, departments, and boundaryspanning roles to cope with all the elements in
the environment
Agree and Disagree - 20
• In a volatile, fast changing environment,
serious planning activities are a waste of time
and resources
Agree and Disagree – 20
• Disagree- planning and forecasting help
managers anticipate and be prepared to
respond to changes.
Agree and Disagree - 30
• Managers of business organizations should not
get involved in political activities
Agree and Disagree – 30
• Disagree- companies pay huge fees to
associations and lobbyists to make sure
government actions work out in their favor