Twenty First Century Organization

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An organizational environment consists of those forces or factors which directly or indirectly affects the organizations working and performance. According to organisational researchers the term “organisational environment” refers to nation’s religions, occupations, cultures, politics, economics, technology, physical settings, demographics, history and industries influencing an organisation (Stewart R. Clegg and James R. Bailey). Organization ecologists (Dilli, 1958; Bourgeois, 1980) conceptualized the environment in two layers:
• The task environment which refers to forces outside the organizations control but affects the organizations performance (Aldrich, 1979). Including customers, labours, competitors and suppliers and
• The general environment which includes those sectors which affect the environment indirectly such as political, legal, economic, sociocultural and technological.
Shift in organisational environments
In recent years organizations have experienced a shift in their environments i.e. in the past years organizational environments used to be static which have shifted to dynamic environments in the present scenario. The static environment included monopoly of businesses. For example: availability of products, no new competitors, no or limited use of technology, little activity by public pressure groups to influence the organization etc. Whereas in dynamic environment there is a shift from monopoly to perfect competition. For example: new competitors resulting in high competition in the market, rapidly changing government regulations, difficulty in acquiring raw materials etc.
Aspects of organisational change
There are many aspects in which an organizations environment changes and perhaps the most imp...

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