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CHAPTER 3 Direct-action Environment

ORGANISATIONAL AND NATURAL
ENVIRONMENTS  External stakeholders: groups or individuals outside the
organisation affecting its activities.
 The importance of environment  Customers
 Suppliers
 Organisational environments  Government
 Direct-action Environment  Special interest groups: use the political process to advance their on
specific issues. (SKOP)
 Indirect-action Environment  Political action committees (Nagorik Committee)
 Media
 Natural Environment  Labour unions & collective bargaining
 Managing Organisational and Natural  Financial institutions
 Competitors
Environments  Others. (professional associations, doctors’ association, engineers’
association, etc.)

The importance of environment

Direct-action Environment

 Organisational activities are constantly affected by a  Internal stakeholders:

variety of factors from outside and within it.  strictly speaking not a part of the organisation’s
 Factors include external environment but to the managers, they are.
 People (employees, customers, suppliers)  Employees
 Technology (information, computer, etc.)  Shareholders & the Board
 Government (rules, regulations, etc.)
 International relationships (bi-lateral, multilateral, inter-
organisational, etc)
 Natural (ecology, dumping hazards, etc.)
 Management has to take such factors into consideration
for a better and sustaining performance.

Organisational environments
Indirect-action Environment

 Social variables:
 External environment  Demographics
 Elements outside the organisation relevant to its  Make-up of the population
operation.  Barisailla, Noakhailla, etc.
 Direct-action elements:  Lifestyles
 Directly influence an organisation’s activities.  Outward manifestation of people’s attitude and values.
 Also known as stakeholders.
 Joint family vs. separate households.
 Indirect-action elements:
 Social values
 Affect the climate in which the organisation operates.
 Attitude towards how organisations should service society.
 How should employees be involved in organisational policy
matters.

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Natural Environments
Indirect-action Environment
 Economic variables:
 General economic conditions and trends  Current environmental concerns:
 Wages  Pollution: making our soil and water toxic.
 Prices charged by suppliers and competitors
 Government fiscal policy
 Climate changes: global warming due to greenhouse
 National income effects.
 Productivity  Ozone depletion: release of CFC destroys ozone
 Inflation layer in the atmosphere.
 Investment  Other issues: biodiversity, adequate pure water
 Savings supplies, population, food security.
 Consumption
 Employment
 Etc.

Indirect-action Environment THANK YOU

 Political variables:
 Factors affecting organisational activities as a result of
political process and climate.
 Government attitude toward organisation.
 Competition between different interest groups.
 Political climate
 Hartal, agitation, blockades, police actions, etc.
 Technological variables:
 Advances in basic science bringing in changes in
products, processes, and materials.

Natural Environments

 Examples:
 Removal of two-stroke auto rickshaws
 Eviction of illegal occupants from the bank of
Buriganga river
 Shifting of tannery industry from Hazaribagh to
Savar.