1. Week Three: Understanding The Environment In Which Organizations Function

2. Objectives for Week Three Discuss the “Feeding Frenzy” Case Discuss Different Theories of How Organizations Respond to Their Environment Rethinking Ryan’s Argument Short Paper Assignment # 1

3. Sort Into Your Consulting Groups and Complete the Following: Evaluate Coler’s leadership style. Can you think of other ways a new manager may have approached the HRS? What else could Coler have done during the initial media turmoil over his ethics? How could Coler have better handled the McGee controversy and the media scrutiny that followed? How was Coler’s preparation for the hearing key to its positive outcome?

4. Case Study Questions Who are the key actors? What is the organizational context? What are the characteristics of the environment?

5. Case Study Questions How do you evaluate Coler’s leadership style? What are the strengths and weaknesses of Coler’s initial management decisions? How else might he have acted? How could Coler have better handled the McGee controversy and the media scrutiny that followed? How was Coler’s preparation for the hearing key to its positive outcome?

6. Environmental Factors CulturalTechnological EducationalPolitical LegalNatural Resources DemographicSociological Economic

7. Uncertainty in Environment To be successful, organizations must obtain: – Information about the environment – Resources from the environment Environmental uncertainty affects how organizations seek information and resources Two dimensions of environmental uncertainty – Complexity versus Simplicity – Stability versus Dynamic Change

8. Dimensions of Uncertainty

9. Open Systems Approach Cannot study organizations w/o studying the surrounding environment Survival and adaptation = key concepts Number of prominent theories of how the environment shapes organizations: – Contingency Theory – Resource Dependency Theory – Population Ecology – Institutional Isomorphism

10. Population Ecology Theory Environment selects viable types of organizations in a Darwinian fashion Most fit organizations garner more resources Inertial features of organization limit adaptation Assumes competition and different organizational varieties

11. Resource Dependency Theory Organizations attempt to manage their environment to ensure access to resources Strategic choices are made to secure resources – Autonomy – Ability to manipulate market/competition – Limited information leads to different interpretations of environment and variation in strategies Importance of internal power

12. Institutional Isomorphism Organizations adapt by imitating what is occurring in like organizations Perceptions of success Norms of professionalism Organizational forms will become more homogeneous over time

13. Comparing Models of Adaptation Population ecology, Resource dependency, Institutional isomorphism How do each of these models define success and effectiveness? What is missing from each model’s notion of success and effectiveness?

14. Steps Organizations Take When Responding to Environmental Uncertainty Positions & Departments Boundary-Spanning Planning & Forecasting Political Activity Interorganizational Linkages

15. Successful Adaptation Depends partly on an organization’s strength prior to environmental shock or change Depends partly on the types of leadership initiatives taken within the organization Organizational health = important

16. New Landscape for Nonprofits What changes in the environment does Ryan describe? What strengths do for-profits bring to social service delivery? How have nonprofits and governmental organizations adapted? Implications? Would Ryan’s article look different today?

17. Readings to Be Completed for Next Class Period Rainey, Chapter 11 Khademian - coursepack Zdenek – coursepack Memorandum of Understanding due next week Short Paper Assignment # 1 due in Week 5