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Busm 353

by: Hali Nepsha

Busm 353 BUSM 353

Hali Nepsha

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These notes cover Pfeffer chapters 1-3. There are some quick definitions. These notes outline the class discussion of organizations and social actor, efficient and effective, social control, depend...
Organization and Environment
Richard Panton
Class Notes
notes, Pfeffer, Chapter, 1, 3, In, class, discussion
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This 3 page Class Notes was uploaded by Hali Nepsha on Wednesday October 12, 2016. The Class Notes belongs to BUSM 353 at Purdue University North Central taught by Richard Panton in Fall 2016. Since its upload, it has received 9 views. For similar materials see Organization and Environment in Business at Purdue University North Central.

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Date Created: 10/12/16
Goes with PPT slides-Pfeffer ch 1-3 revised Pfeffer ch 1-3 Definitions: Organizations- any grouping of ppl bound together in pursuit of common goal Environment- exists outside boundaries of org. Social Actor- any component of enviro. Has dealings w/ org. Soc. Actors want something from org. the org. needs/wants something from social actors. Focal organizations- target of social actor’s concerns/action Value- w/e receiver perceives Transaction- dealing between org and social actor. Each tries get own wants/needs satisfied most value – Pfeffer attempts explain why and how org.s interact w/ their enviro. – Huber’s work guides us forwards  Orgs interact with their enviro bc have to  No org completely self-contained Orgs moved from pfeffer form to what they are today by: – Ones that survived did by change (evolved) How did they change?: o Respond in small steps to enviro. Demands • Pfeffer tells us that the org serves its environment – BUT that the environment can also be made – in some times and ways – to serve the org. Ch 2 Legitimacy Org & Social Actor interaction = demands How do orgs determine address to demands?: o Social actors’ demands compete w/ one other and with internal demands for resources o Allocation resources is managements job No org. can dominate all relationship w/ its enviro. No soc. Actor can dominate every org it has a relationship with • The amount of commitment an org can accumulate from individual actors will determine what actions it can begin, continue, or end. • Interactions between org and actor define the org’s limits • The org ends where its discretion ends • Beyond that place, it cannot be in full control of its actions/destiny • Efficient and Effective Orgs are measured by both their EFFICIENCY and EFFECTIVENESS Effic. Easier, but less useful Effec. More subjective (social actor’s measu. Of the org.) Effic. Units of output/units of input (units of out put divided by units of input) Effect. Is external Effic. Doing things right Effect. Doing the right things • Orgs and actors both use efficiency arguments to disguise effectiveness concerns • Success comes ONLY to orgs that do BOTH well Social Control Few orgs exist w/ declared purpose of controlling other orgs. • Affects vary – from total control to very narrow focus Dependences • Interdependence occurs when one actor does not control ALL conditions. – across a broad spectrum: from nearly independent to complexly interdependent • Independence occurs rarely, – because total control of resources occurs rarely • Outcome and Behavior Interdependence • Outcome: 2 actors depend on each other’s actions to achieve their outcomes Competitive vs. Symbiotic dependence Competitive one gains if other gives Symbiotic both gain or lose (use diff. resources) Resource Dependence  Pfeffer names the enture school of thought in the org. resource dependence.  The more self-contained an org can be, the fewer interdependencies it must manage (strong reason for vertical integration)  Orgs. Transact w/ their enviro o External control efforts are possibly and expected o Response to one actor can be refusing to respond to another actor  Pfeffer’s 10 item list of conditions where the org must consider the actors o Org is aware that demands exist o Org obtains resources from actor o The resources are important to the org o Substitute resources are not easily available o Org does not control the actor’s resources o Org’s actions are observable o Demands do not conflict with demands of other actors o Org does not control actor or its demands o Org is able to take actions to meet demands o Org wishes to survive (Not all 10 conditions have to be present) – Their weight is additive, however. – The more conditions are met, the more likely the focal org will respond (favorably) to the social actor. If org owns resources= independent If org have alt resources= increase independent If org have coercive power over resources=helps independent If org don’t need= independent of it • POWER favors organizations that can reduce uncertainty. – independent reduces uncertainty • Factors of dependence: o How badly do you need a resource? – If you don’t need it, you can’t be controlled because of it o What influence does an actor have over the resource? – Direct relationship and more influence mean greater control over you o Are there alternatives to the resource? Diversification o Org.s diversify to reduce dependencies o Orgs. depending on scarce resources w/ uncertain control (less likely to survive) o Stability- lack of uncontrolled uncertainty (can be most important) Access to Resources o Control access to resources o Use of resources can also be a source of control (leverage) o Rule-Makers also exert control over resources o may assign or grant power to some, but not all Resource Concentration  Monopolies gave clear power over resources they control • Pure competition eliminates any single power, granting equal power to all – But we know that is an ideal, not a reality • Problems do not come from concentration, – but from the inability of others to create opposing power, – and restore balance • Balanced power compels negotiated settlements • Concentration =inevitable • When concentration occurs, an opposing concentration often develops – to blunt the power of the original concentration – to give the less powerful greater power – to give the less structured more structure Asymmetry  Asy.= equal, opposing powers force settlement thru negotiation  Unequal power allows stronger to force the weaker


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