Chapter 8: Environment
Definiingn einiiroineein
General versus specifc environment (Fig. 8.1 pg. 251)
A gneineral einiiroineein iincludes eiery hiingn such as ecoinoeic fac ors, politcal coinditoins,
he social eilieu, he legnal s ruc ure, e c.
o I eincoepasses coinditoins ha po eintally haie ain iepac oin he orgnainizatoin
The specifc einiiroineein is he par ha is direc ly releiain o he orgnainizatoin iin achieiiingn
i s gnoals.
o I is he par wi h which eainagneeein is coincerined: critcal coinst ueincies afectingn
efectieiness
o I will iary depeindiingn oin he doeaiin i has chosein. Domain: ain orgnainizatoin’s claie
ha i has s aked ou for i self wi h respec o produc s/seriices aind earke s seried
o A doeaiin de ereiines he poiin s a which i is depeindein oin i s specifc einiiroineein
Actual versus perceived environment
We lack he eeains of assessiingn he chaingnes of ain einiiroineein . We rely oin coepariingn
einiiroineein s. The saee einiiroineein ha oine orgnainizatoin perceiies as uinpredic able, is
easily uinders ood by aino her. Classifyiingn einiiroineein s which are par ly s able aind par ly
chaingniingn raises issues. I is difcul o de ereiine which is specifc soee hiingns are obiious,
bu o hers are disagnreed oin.
o Orgnainizatoins coins ruc heir einiiroineein s
o Mainagners respoind o he perceiied einiiroineein
Environmental uncertainty
Einiiroineein s difer iin einiiroineein al uincer aiin y. Soee are iery s able, eeainiingn ha here
are few forces chaingniingn (e.gn. coepet ors or echinolognical break hrougnhs). The inueber of
uincer aiintes iin ain einiiroineein iinfueince eainagneeein actoin. Soee are easy o predic ,
aind herefore eainagneable, whereas o hers are coeplica ed o uinders aind.
The enacted environment
The process hrougnh which he ac ual/perceiied einiiroineein s iin erac o uincer aiin y is
explaiined by he einac ed einiiroineein
o Uincer aiin y aind he einiiroineein exis sieul aineously wi hiin he decisioin eaker’s
head. This s ar s a cycle of searchiingn for iinfo o reduce uincer aiin y, leadiingn o he
hougnh ha eore uincer aiin y exis s whein gna heriingn iinforeatoin
o This shows how einiiroineein s are einac ed iin he decisioin eaker’s eiind
o Noreatie iiew of einiiroineein : coinsider einiiroineein s aloingn cer aiin dieeinsioins,
such as uincer aiin y, aind eainagners perceiie hese einiiroineein s iin predic able ways
Laindeark coin ributoins
Burns and Stalker
S udied how s ruc ure difers depeindiingn oin einiiroineein al coinditoins. They ideintfed wo
s ruc ures.
1. Mechainistc s ruc ure: a s ruc ure charac erized by hignh coeplexi y, forealizatoin
aind cein ralizatoin.
a. Hignh job specializatoin, power resides iin hierarchy, iertcal coeeuinicatoin
, 2. Orgnainic s ruc ure: fexible aind adaptie, wi h eephasis oin la eral coeeuinicatoin,
inoin-au hori y based iinfueince aind loose respoinsibilites
a. Coeei eein is ialued eore hain obedieince, power is placed iin expertse
They belieied ha a eechainistc designin is useful iin a s able, cer aiin einiiroineein , whereas
ain orgnainic einiiroineein is inecessary for a urbulein einiiroineein . Howeier, hey are ino
polar opposi es.
Lawrence and Lorsch
Explored he relatoinship be weein einiiroineein al difereinces aind efectie orgnainizatoin
s ruc ures
o Coepared iin erinal wi h ex erinal einiiroineein s
o Hypo hesis: hose ha alignin well are successful (proiein correc )
o Ex erinal einiiroineein : eeasured by he degnree of uincer aiin y
o Iin erinal: wo dieeinsioins difereintatoin aind iin egnratoin
o Differentiation: ask segneein atoin aind at udiinal difereinces held by iindiiiduals iin
iarious depar eein s. (eeasure of coeplexi y, ino oinly specializatoin)
o Integration: he quali y of collaboratoin ha exis s aeoingn iin erdepeindein uini s
o The eore urbulein , coeplex aind diierse he ex erinal einiiroineein was, he hignher
he difereintatoin aeoingn subpar s. This requires hignh iin egnratoin
o Einiiroineein s are coeposed of sub einiiroineein s, each wi h diferein uincer aiin y
degnrees. Successful orgnainizatoins’ subuini s eee deeainds of sub einiiroineein s
Duncan’s complexity and change framework (Fig. 8.2 pg. 259)
Duincain classifed einiiroineein s aloingn wo dieeinsioins: he ra e of chaingne of einiiroineein s,
aind he einiiroineein al coeplexi y. Read able carefully!
o A s able aind low coeplexi y einiiroineein : low uincer aiin y
o A s able aind hignh coeplexi y einiiroineein : low o eodera e uincer aiin y
o Ain uins able aind low coeplexi y einiiroineein : eodera e o hignh uincer aiin y
o Ain uins able aind hignh coeplexi y einiiroineein : hignh uincer aiin y
S abili y einables decisioin eakiingn o be cein ralized aind perei s hignh forealizatoin.
Coeplexi y howeier requires gna heriingn, processiingn aind respoindiingn o einiiroineein al
eleeein s wi h heir owin deeainds decein ralizatoin aind coordiinatoin
The role of he bouindary spaininer
The role is releiain o he area where he orgnainizatoin iin erac s wi h i s einiiroineein : he
bouindary of he orgnainizatoin (eay be iindiiiduals or depar eein s). Why do hey exis ?
o If here is ain iin erruptoin of he fow of work, i should proceed hrougnh ain
es ablished chaininel, fl eriingn he iinforeatoin froe he einiiroineein iin o a fore
useful for he productoin depar eein .
o The bouindary spaininer has he expertse iin uinders aindiingn aind iin erpretingn he
einiiroineein al segneein s
o They fl er aind process iinforeatoin iin o a useful fore for he orgnainizatoin
o They pro ec he core fore uindue disruptoin by reeoiiingn he ineed for i o iin erac
wi h he einiiroineein
o They represein he orgnainizatoin o he einiiroineein
Definiingn einiiroineein
General versus specifc environment (Fig. 8.1 pg. 251)
A gneineral einiiroineein iincludes eiery hiingn such as ecoinoeic fac ors, politcal coinditoins,
he social eilieu, he legnal s ruc ure, e c.
o I eincoepasses coinditoins ha po eintally haie ain iepac oin he orgnainizatoin
The specifc einiiroineein is he par ha is direc ly releiain o he orgnainizatoin iin achieiiingn
i s gnoals.
o I is he par wi h which eainagneeein is coincerined: critcal coinst ueincies afectingn
efectieiness
o I will iary depeindiingn oin he doeaiin i has chosein. Domain: ain orgnainizatoin’s claie
ha i has s aked ou for i self wi h respec o produc s/seriices aind earke s seried
o A doeaiin de ereiines he poiin s a which i is depeindein oin i s specifc einiiroineein
Actual versus perceived environment
We lack he eeains of assessiingn he chaingnes of ain einiiroineein . We rely oin coepariingn
einiiroineein s. The saee einiiroineein ha oine orgnainizatoin perceiies as uinpredic able, is
easily uinders ood by aino her. Classifyiingn einiiroineein s which are par ly s able aind par ly
chaingniingn raises issues. I is difcul o de ereiine which is specifc soee hiingns are obiious,
bu o hers are disagnreed oin.
o Orgnainizatoins coins ruc heir einiiroineein s
o Mainagners respoind o he perceiied einiiroineein
Environmental uncertainty
Einiiroineein s difer iin einiiroineein al uincer aiin y. Soee are iery s able, eeainiingn ha here
are few forces chaingniingn (e.gn. coepet ors or echinolognical break hrougnhs). The inueber of
uincer aiintes iin ain einiiroineein iinfueince eainagneeein actoin. Soee are easy o predic ,
aind herefore eainagneable, whereas o hers are coeplica ed o uinders aind.
The enacted environment
The process hrougnh which he ac ual/perceiied einiiroineein s iin erac o uincer aiin y is
explaiined by he einac ed einiiroineein
o Uincer aiin y aind he einiiroineein exis sieul aineously wi hiin he decisioin eaker’s
head. This s ar s a cycle of searchiingn for iinfo o reduce uincer aiin y, leadiingn o he
hougnh ha eore uincer aiin y exis s whein gna heriingn iinforeatoin
o This shows how einiiroineein s are einac ed iin he decisioin eaker’s eiind
o Noreatie iiew of einiiroineein : coinsider einiiroineein s aloingn cer aiin dieeinsioins,
such as uincer aiin y, aind eainagners perceiie hese einiiroineein s iin predic able ways
Laindeark coin ributoins
Burns and Stalker
S udied how s ruc ure difers depeindiingn oin einiiroineein al coinditoins. They ideintfed wo
s ruc ures.
1. Mechainistc s ruc ure: a s ruc ure charac erized by hignh coeplexi y, forealizatoin
aind cein ralizatoin.
a. Hignh job specializatoin, power resides iin hierarchy, iertcal coeeuinicatoin
, 2. Orgnainic s ruc ure: fexible aind adaptie, wi h eephasis oin la eral coeeuinicatoin,
inoin-au hori y based iinfueince aind loose respoinsibilites
a. Coeei eein is ialued eore hain obedieince, power is placed iin expertse
They belieied ha a eechainistc designin is useful iin a s able, cer aiin einiiroineein , whereas
ain orgnainic einiiroineein is inecessary for a urbulein einiiroineein . Howeier, hey are ino
polar opposi es.
Lawrence and Lorsch
Explored he relatoinship be weein einiiroineein al difereinces aind efectie orgnainizatoin
s ruc ures
o Coepared iin erinal wi h ex erinal einiiroineein s
o Hypo hesis: hose ha alignin well are successful (proiein correc )
o Ex erinal einiiroineein : eeasured by he degnree of uincer aiin y
o Iin erinal: wo dieeinsioins difereintatoin aind iin egnratoin
o Differentiation: ask segneein atoin aind at udiinal difereinces held by iindiiiduals iin
iarious depar eein s. (eeasure of coeplexi y, ino oinly specializatoin)
o Integration: he quali y of collaboratoin ha exis s aeoingn iin erdepeindein uini s
o The eore urbulein , coeplex aind diierse he ex erinal einiiroineein was, he hignher
he difereintatoin aeoingn subpar s. This requires hignh iin egnratoin
o Einiiroineein s are coeposed of sub einiiroineein s, each wi h diferein uincer aiin y
degnrees. Successful orgnainizatoins’ subuini s eee deeainds of sub einiiroineein s
Duncan’s complexity and change framework (Fig. 8.2 pg. 259)
Duincain classifed einiiroineein s aloingn wo dieeinsioins: he ra e of chaingne of einiiroineein s,
aind he einiiroineein al coeplexi y. Read able carefully!
o A s able aind low coeplexi y einiiroineein : low uincer aiin y
o A s able aind hignh coeplexi y einiiroineein : low o eodera e uincer aiin y
o Ain uins able aind low coeplexi y einiiroineein : eodera e o hignh uincer aiin y
o Ain uins able aind hignh coeplexi y einiiroineein : hignh uincer aiin y
S abili y einables decisioin eakiingn o be cein ralized aind perei s hignh forealizatoin.
Coeplexi y howeier requires gna heriingn, processiingn aind respoindiingn o einiiroineein al
eleeein s wi h heir owin deeainds decein ralizatoin aind coordiinatoin
The role of he bouindary spaininer
The role is releiain o he area where he orgnainizatoin iin erac s wi h i s einiiroineein : he
bouindary of he orgnainizatoin (eay be iindiiiduals or depar eein s). Why do hey exis ?
o If here is ain iin erruptoin of he fow of work, i should proceed hrougnh ain
es ablished chaininel, fl eriingn he iinforeatoin froe he einiiroineein iin o a fore
useful for he productoin depar eein .
o The bouindary spaininer has he expertse iin uinders aindiingn aind iin erpretingn he
einiiroineein al segneein s
o They fl er aind process iinforeatoin iin o a useful fore for he orgnainizatoin
o They pro ec he core fore uindue disruptoin by reeoiiingn he ineed for i o iin erac
wi h he einiiroineein
o They represein he orgnainizatoin o he einiiroineein
