Professional Documents
Culture Documents
CHAPTER 3
Chapter 3 Objectives
Teaching Notes
The chapter on environment establishes the context for studying organizations. A number
of ideas and theories are introduced that are covered in more detail in later chapters, for
example Burns & Stalker and Lawrence & Lorsch (Chapter 4), resource dependency
theory (Chapter 8) and institutional theory (Chapter 4).
One can begin by asking students what the differences are between modernist, symbolic,
and postmodernist views of the environment based on ideas discussed in this and the
previous chapter:
Key Points:
One key issue is defining the boundary between the organization and its environment.
This varies across the three perspectives and also can depend on the purpose of the
analysis. Modernists focus on the need to define the organization and its environment,
and to manage the boundary by protecting the organization from environmental factors
and influencing the environment in the interest of the organization. The boundaries are
particularly noticeable in the identification of stakeholders, sectors, networks note the
symbolic boundaries (circles) in Figures 3.2 through 3.6. Symbolic-interpretivists see a
more fluid boundary (if any), because organizational members construct and organizations
are constructed by their environment. Postmodernists are concerned with blurring
boundaries, and some call for greater environmental and social responsibility.
Modernism buffering, boundary spanning.
Identify stakeholders (people, groups, organizations), and their
interests.
Interorganizational network analysis can help identify stakeholders
and their relationships.
Identify the general environment and its sectors, as well as
characteristics of the international environment (if applicable), as a
basis for managing environmental demands.
To be effective, the internal structure of an organization needs to
match the demands of the environment (Burns & Stalker, Lawrence &
Lorsch).
Resource dependency theory helps managers identify network
influences, especially those the organization is dependent upon, and
then minimise and proactively manage those dependencies.
Population ecology involves comparing the resources used by a
group of competitor organizations to analyse why some organizations
survive over others.
Discussion Questions
2. Tell class members that they are about to start a business in the geographic location
of the University. (The instructor may want to choose the business or have students
brainstorm and vote on a business). Ask them to:
1. Stakeholders:
www.tutor2u.net/business/accounts/stakeholder_theory.htm
3. Examples of how companies such as FedEx and IBM perceive their relationship
with the environment and social responsibility:
http://www.fedex.com/us/about/
http://www.ibm.com/ibm/environment/
http://www.ibm.com/ibm/responsibility/