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1. What is the external environment? Explain its two components. Whyis analysing the external environment important when a managermakes a decision?2. In general, the greater the environmental uncertainty, the moreattention management in organisations must direct towards theexternal environment. What is environmental uncertainty? Explainthe two dimensions of environmental uncertainty and how theydetermine environmental uncertainty.3. Choose an organisation to analyse and discuss in terms of itsorganisational culture. What are the observable elements in theculture of your chosen organisation? Using the competing valuesframework, what kind of culture do you think this organisation has?4. One of your co-workers brought along his friend to lunch. Whendiscussing his new female boss, the friend says, “Yeah, she got thejob just because she’s an ethnic woman. There’s no way that someonelike me had a chance given her pedigree. And she now has the nerveto act like we’re all one big happy team and the rest of us shouldaccept her leadership. I’m doing my best to make it hard for her tosucceed”. It was uncomfortable for you just to hear this. Your co-worker looks dismayed but isn’t saying anything. What do you do orsay? Will you just let the comment go, or do something more?

Question

  1. What is the external environment? Explain its two components. Whyis analysing the external environment important when a managermakes a decision?2. In general, the greater the environmental uncertainty, the moreattention management in organisations must direct towards theexternal environment. What is environmental uncertainty? Explainthe two dimensions of environmental uncertainty and how theydetermine environmental uncertainty.3. Choose an organisation to analyse and discuss in terms of itsorganisational culture. What are the observable elements in theculture of your chosen organisation? Using the competing valuesframework, what kind of culture do you think this organisation has?4. One of your co-workers brought along his friend to lunch. Whendiscussing his new female boss, the friend says, “Yeah, she got thejob just because she’s an ethnic woman. There’s no way that someonelike me had a chance given her pedigree. And she now has the nerveto act like we’re all one big happy team and the rest of us shouldaccept her leadership. I’m doing my best to make it hard for her tosucceed”. It was uncomfortable for you just to hear this. Your co-worker looks dismayed but isn’t saying anything. What do you do orsay? Will you just let the comment go, or do something more?
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Solution

  1. The external environment refers to the conditions, entities, events, and factors surrounding an organization that influence its activities and choices. It is divided into two components: the macro environment, which includes larger societal forces such as economic, political, cultural, technological, and demographic factors; and the micro environment, which consists of the organization's immediate environment, such as competitors, suppliers, customers, and labor supply. Analyzing the external environment is crucial for managers as it helps them understand market trends, anticipate changes, identify opportunities and threats, and make informed decisions.

  2. Environmental uncertainty refers to the degree of unpredictability in the organization's external environment. It has two dimensions: complexity and dynamism. Complexity refers to the number of factors in the environment that the organization needs to consider, while dynamism refers to the rate at which these factors change. High complexity and high dynamism result in high environmental uncertainty, requiring more attention from management to monitor and respond to these changes.

  3. To answer this question, I would need specific information about an organization. However, observable elements in an organization's culture might include its physical environment, how employees interact, the company's treatment of its employees, its decision-making processes, and its overall values and beliefs. The competing values framework could be used to categorize the organization's culture as clan, adhocracy, market, or hierarchy, depending on its focus on flexibility versus stability and internal versus external orientation.

  4. In such a situation, it would be important to address the issue directly but respectfully. You could say something like, "I understand that you might be frustrated, but it's not fair to assume that someone got a job solely because of their ethnicity or gender. Everyone has unique skills and experiences that they bring to a team. Let's try to keep our conversations respectful and professional." This approach not only addresses the inappropriate comment but also encourages a more inclusive and respectful workplace culture.

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