ORGANIZATIONS AND ENVIRONMENTS

(Managing for the Future, Module 9, Page 8-22)

THREE WELL - KNOWN FIELDS

Strategic design perspective
Political perspective
Cultural perspective

STRATEGIC DESIGN-KEY CONCEPTS

Grouping:
basically
means

drawing

boundaries of organization and subunits

around activities within the organization,
structure wise functioning.
Linking: it means building information flows
between interdependent units within the
organization

and

with

key

external

organizations.
Aligning:

ensuring

that

subunits
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and

people have the resources and motivation

STRATEGIC DESIGN PERSPECTIVE

Organization Set
Organization as input / throughout process /
output system
Implies: Input

Process

Output

(Input is derived from the environments,

manufacturing / adding values takes place
within the organization or firm and outputs
come out as finished products)
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ORGANIZATIONAL SET MODEL OF

STRATEGIC DESIGN PERSPECTIVE

ORGANIZATIONAL SET MODEL

Input set model
model

Internal Process

Output model

Network of model encompasses competitors

set, regularity set, input set and output set
Input: Material, Human Resource, Financial
and Technology
Output: Distributors, Transport Companies
and Customers
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NETWORK MANAGING TOOLS

Grouping: Functional, Output, Customer
Linking: Liaison or integrator positions
Temporary boundary-spanning groups
Permanent boundary-spanning groups
Information technology systems

BOUNDARY SPANNING
Boundary spanning is a term used to describe the
efforts by an organization to establish connections
both within and outside the organization under
consideration.
Necessity for this is due to the fact that certain
boundaries exist within and outside organizations as
a consequence of their attempt to create specific
units that serve as a structural framework.
Boundaries could be between various levels of
employees within an organization
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NETWORK MANAGING TOOLS

Aligning: Performance Measurement Systems: shared
ways of measuring quality of relationships
Incentive Systems: ways of sharing
additional returns by extra efforts
Resource Allocation: commitment of more
resources; human, financial, technology
Human Resource Development: shared
training programmes

POLITICAL PERSPECTIVE
Interest: What does each set of stakeholders want?
How clearly defined are the interests?
What are the priorities assigned?
Power: What is the basis of power or influence?
How stakeholder would react?

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POLITICAL PERSPECTIVE
Power and Interest leads to coalition building
and negotiations with stakeholders
Stakeholders
organizations

are

the

which

groups

are

or

affected

other
by

an

organization, therefore they have a stake in its

operations
Internal

and

external

stakeholders

multiple identities
11

with

KEY TOOLS OF STAKEHOLDER MODEL

Mobilization of interest of

the external

stakeholders
Coalition

building

between

external

internal stakeholders
Cooperation amongst stakeholders

12

and

POLITICAL PERSPECTIVE
External Stakeholder: Unions
Shareholders
Creditors
Government departments
Communities
Customers
suppliers

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POLITICAL PERSPECTIVE:
STAKEHOLDER MODEL

14

POLITICAL PERSPECTIVE
Stakeholder Model: Stakeholders manipulate through mobilization
of a particular set of those who can influence
organizational

functioning

to

attain

their

objectives
It stands true for both i.e. internal as well as
external stakeholders.

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CULTURAL PERSPECTIVE
Understanding social context of organizations
is as important as that of power and interest
Social Context: Status and legitimacy has powerful influence
on organizational functioning
Expectations of customers and people in
organizations shape their attitudes and
outlooks towards organizational functioning
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CULTURAL PERSPECTIVE
Institutional Field: term taken from concept of
institutionalization, process by which certain
organizational

patterns

are

accepted

as

legitimate, right way of doing things.

They have recognized area of institutional life,
become known as social reference group.

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WHY CULTURAL PATTERNS?

Powerful organizations may resort to coercive
isomorphism
Professional or interest groups insist that such
patterns are right: normative isomorphism
Organizations take successful organizations
as models: mimetic isomorphism.
Isomorphism:
process

by

means
which

structural
organizations

similarity,
become

similar to others in given fields

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CULTURAL PERSPECTIVE:
INSTITUTIONAL FIELD MODEL

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