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Summary Introduction to management, Chapter 4 $4.88   Add to cart

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Summary Introduction to management, Chapter 4

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The general environment of organizations consist of all external conditions that set the context for managerial decision making: • Economic conditions - overall health of economy in terms of financial markets, inflation, income levels, and job outlook - Offshoring: outsourcing of jobs to (low...

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  • February 23, 2017
  • 4
  • 2015/2016
  • Summary
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External Environment and Organizational Culture 4

The General or Macroenvironment

The general environment of organizations consist of all external conditions that set
the context for managerial decision making:

 Economic conditions
- overall health of economy in terms of financial markets, inflation, income
levels, and job outlook
- Offshoring: outsourcing of jobs to (lower-cost) foreign locations
- Reshoring: return of jobs from foreign locations (rising labor costs, higher
shipping costs, complicated logistics)

 Legal-Political Conditions
- Existing and proposed laws and regulations, government policies, and the
philosophy and objectives of political parties
- Vary from one country to the next
- Not all countries stand up for international copyright (patent) and intellectual
property protection
- Internet censorship: the deliberate blockage and denial of public access to
information posted on the internet. (China, with twitter youtube)

 Sociocultural Conditions
- Diversity issues relating to educational opportunity, access to technology,
housing options, job options and more.
- Norms, customs, demographic of a society and region. As well as social
values as ethics, human rights, gender roles, and lifestyle
- Generational cohorts – people born within a few years of one another and
who experience somewhat similar life events during their formative years.
- Baby Boomers are “digital immigrants”
- iGeneration are “digital natives” who grew up in technology homes, schools and
friendship. Multitasking, desire for immediate gratification, continuous contact
with others, and less concern.
- With high unemployment and big, wide gaps between the average workers
and executives, public values show more intolerance on executive pay.

 Technological conditions
- Social media, features and “apps” on smart phones
- For employers technology gives potential problems, as well as opportunities.
It’s a fact that many employees spend a lot of time doing personal things
online. Some employers call this loss of productivity time.
- On the employee side of things, technology is often a factor in work-life
issues. Do you realize how easily it carries work responsibilities into our
nonwork lives?

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