Lesson 12ANALYZING ORGANIZATIONAL ENVIRONMENT AND UNDERSTANDINGORGANIZATIONAL CULTURETHE ENVIRONMENT:The impact of the external environment on a manager’s actions and behaviors cannot be overemphasized.There are forces in the environment that play a major role in shaping managers’ endeavors.Types of Environment:1) External Environment2) Internal EnvironmentExternal Environment‘Major forces outside the organization with potential to influence significantly a product orservice’s likely success is called its external environment.’Types of External Environments:The insights derived from systems theory have helped to highlight the importance of a managed interactionbetween an organization and its external environment. Two major divisions have been made in the externalenvironment:1) The Mega Environment2) The Task EnvironmentThe Mega EnvironmentThe mega-environment, or general environment as it is sometimes called, is that segment of the externalenvironment that reflects the broad conditions and trends in the societies within which an organizationoperates.The Task EnvironmentThe task environment is that segment of the external environment made up of specific outside elements(usually organizations) with which an organization interfaces in the course of conducting its business. Thetask environment depends on the products and services the organization offers and the locations where itconducts business. The organization may be more successful in affecting its task environment than it is itsmega-environment.Elements of the Task Environment:1. An organization’s customers and clients are those individuals and organizations that purchase itsproducts and/or services. It is becoming increasingly important to stay in touch with customers’needs.2. An organization’s competitors are other organizations that either offers of have a high potential ofoffering rival products or servicesOrganization’s Relationships with Stakeholders:1. Stakeholders are any constituencies in the organization’s external environment that are affected by,or have a vested interest in, the organization’s decisions and actions2. Stakeholder relationship management is important for two reasons.The Organization’s CultureJust as individuals have a personality, so, too, do organizations. We refer to an organization’s personalityits culture.Organizational culture is a system of shared meaning and beliefs within an organization that determines,in large degree, how employees act. This definition implies several things.