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The Organizational Environment

  • Date Submitted: 12/28/2010 12:06 AM
  • Flesch-Kincaid Score: 25.9 
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1. In the organizational environment the art of managing people is undergoing significant shifts.

  a. Supply-push
A company anticipates consumer demands and then produces the right resources at the right time and place to meet them.
They organize on how to build a supply of products or services and then ‘push’ them out to end customers on stores shelves, in catalogs etc

  b. Demand-pull
This allows much closer and ‘one-to-one’ contact between customer and seller.
It offers customers the components of a product/service then the customer creates their own version by ‘pulling’ what they want.
  c. Anytime, anyplace information work

This is the synchronization of events such that one can perform tasks regardless of time and place constraints, this is achieved through use of technology to enable one stay connected everywhere.

  d. Outsourcing
The practice of using subcontractors or other businesses, rather than paid employees, for standard services such as accounting, payroll, information technology, advertising etc.

2. The major elements in the business environment impact model.

    • Economic environment - consists of economic factors that influence the business in a country. These factors include gross national product, corporate profits, inflation rate, employment, balance of payments, interest rates consumer income etc.
    • Social environment - describes the characteristics of the society in which the organization exists. Literacy rate, customs, values, beliefs, lifestyle, demographic features and mobility of population are part o the social environment.
    • Political environment - comprises political stability and the policies of the government. Ideological inclination of political parties, personal interest on politicians, influence of party forums etc. create political environment.

    • Legal environment - consists of legislation that is passed by the parliament and state legislatures. Examples of such legislation...


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