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Organizational theory
1) What are some forces that influence environmental uncertainty? Which typically has the greatest impact on uncertainty; environmental complexity or environmental change? Why?
Activities taking place in the environmental sector can be described in various ways whether the environmental conditions and external environment is simple or complex, homogenous or heterogeneous, stable or unstable ,however they boil down to two major ways in which environment influence the organisation: the need for information about the environment and the need for resources from the environment. Environmental uncertainty is thus influenced by how the environmental conditions exist. This negatively affects the decision making process of the managers. The two major influences of environmental uncertainties is simplicity or complexity of the environment and the stability or instability of the environment.
Environmental change has a lesser impact on uncertainty as compared to environmental complexity this is attributed to the fact that environmental change at some level is known and can be projected for instance population increase can be projected and the facilities for example public utilities may be altered to cater for the population. On the other hand complexity has a greater impact on uncertainty since most organizations operate on a complex environment with massive interrelationships and interconnections, this then proves difficult when trying to concentrate individually or focus on a particular organisation without involving other players. This proves to be a major effect on uncertainty.
2) Name some factors causing environmental complexity for an organization of your choice. How might this environmental complexity lead to organizational complexity? Explain.
In a complex environment many diverse elements interact with and influence the organization. The major factors causing environmental complexity for example in a university include factors l such as suppliers, technology, and customers. Harvard University utilizes a wide range of technologies in their operations in terms of equipment; it is also a major focal point for cultural change and interaction of many cultures, government agencies, professional and scientific associations, donors, international agencies, parents, legislators, alumni and community residents all interact with the university thus creating a complex environment. The effect created by the simultaneous interaction of these factors creates an organizational complexity which then results in uncertainty on the organization.
3) Why do organizations become involved in inter-organizational relationships? Do these relationships affect an organization’s dependency? Performance?
Organizations are involved in inter-organizational relationships mainly to adapt and minimize the organizational uncertainty caused by complexity and change. The organizations come together to share scarce resources especially when costs are high and to be more competitive on a global scale.
However these inter-organizational relations will have some impact on dependency, organization depends on shared resources gives much power to other organizations that will then have an upper hand in managerial decision making than others. The performance of an organization may also be affected if since the decision making is done by several people it eliminates the autonomy of an organisation thus hampering its performance.
Reference
Daft, R. L. (2009). Organization theory and design. New York: Cengage Learning.
