Organization Culture

1. OrganizationalOrganizational
Environment & CultureEnvironment & Culture

2. Organizational Environment &Organizational Environment &
CultureCulture
External EnvironmentExternal Environment
Internal EnvironmentInternal Environment

3. Changing EnvironmentChanging Environment
General EnvironmentGeneral Environment
Spesific EnvironmentSpesific Environment
External EnvironmentExternal Environment
Environmental change
Environmental Complexity
Environmental Munificence
Uncertainty

4. Environmental ChangeEnvironmental Change
Environmental Change :Environmental Change :
is the rate at which a company’s general andis the rate at which a company’s general and
spesific environments change.spesific environments change.
the rate of environmentalthe rate of environmental
changechange
Stable EnvironmentStable Environment slowslow
Dynamic EnvironmentDynamic Environment fastfast
Example :Example :
EA sport is company that competes in one of theEA sport is company that competes in one of the
most dynamic external environment.most dynamic external environment.

5. Punctuated equilibrium theoryPunctuated equilibrium theory
Theory that holds that companies :Theory that holds that companies :
Go through long simple periods of stability (equilibrium)Go through long simple periods of stability (equilibrium)
Followed by short periods of dynamicFollowed by short periods of dynamic
Fundamental change (revolution) andFundamental change (revolution) and
Ending with a return to stability (new equilibrium)Ending with a return to stability (new equilibrium)

6. Environmental ComplexityEnvironmental Complexity
Environmental ComplexityEnvironmental Complexity
Is the number of external factors in theIs the number of external factors in the
environment that effect organizations.environment that effect organizations.
Simple environmentSimple environment Complex environmentComplex environment
a few environmental factorsa few environmental factors many environmental factorsmany environmental factors
example :example : example :example :
the baking industrythe baking industry Kellogg’s Cereal companyKellogg’s Cereal company

7. Environmental MunificenceEnvironmental Munificence
Environmental MunificenceEnvironmental Munificence
is the degree to which on organization’sis the degree to which on organization’s
external environment has an abundanceexternal environment has an abundance
or scarcity of critical organizationalor scarcity of critical organizational
resources.resources.

8. UncertaintyUncertainty
 UncertaintyUncertainty
Extent to which managers can understand orExtent to which managers can understand or
predict which environmental changes and trendspredict which environmental changes and trends
will effect business.will effect business.
High Resources
Medium Change
Low Complexity