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Sociocultural Environment-refers to the norms, customs and values of the general population and its demographic subgroups; influences needs and wants of customers, the expectations of members and owners, and the attitude of competitors and suppliers.

Influence of the sociocultural environment on managers

Mainstream view Managers are must adapt to the trends so that they can maximise material gains for their organization. Managers must recognize new opportunities in the marketplace, because doing so permits them to gain market share relative to their competitors Multistream view Managers follow trends that facilitate participation and community building in the workplace and seek to enhance team building and develop links to external organizations and groups, even when these activities are not related to increased profits. Managers are more likely to offer onthe-job daycare centers and flexible work time. Multistream view Managers deliberately provide opportunities for their members to engage the larger society in ways that go beyond meeting simply materialist-individualist goals. Multistream managers believe that societal well-being encompasses much more than financial success.

Influence of Managers on the sociocultural environment

Mainstream view Managers can shape public opinion and sociocultural values by supporting think tanks1 that promote their organizational interests. Managers try to shape the sociocultural environment via the media. Values that dominate the mass media Happiness is found in having things (materialism) Get all you can for yourself (individualism) Get it all as quickly as you can (short time horizon) Win at all costs (competitiveness)

a. b. c. d.

B. Natural Environment composed of all living and nonliving things that have not been created by human technology or human activity. Managers depend on the natural environment to draw organizational inputs and to dispose of organizational outputs.

Influence of the Natural environment on managers

Mainstream view Ecological footprint is a popular way for managers to think about how many natural resources their organizations use. Multistream view Multistream organizational strategies seek to produce less waste than their competitors, and to find ways to take existing waste in the environment and transform it into useful goods and services. Multistream view Managers are interested in sustainable developmentdevelopment that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Influence of Managers on the Natural environment

Mainstream view Green incentives implemented by companies to support environmentally friendly products and to derive revenues from operations that derive harmful emissions or create energy efficiency

Obstructionist stance Managers do as little as possible to address environmental problems .Instead, focus on narrowly defined economic priorities. Defensive strategy Managers do only as much as legally required. They put the interest of the shareholders first at the expense of other stakeholders and the environment Market approach Managers show concern for environmental concerns in response to demands or opportunities in the marketplace.

Accommodation or stakeholder approach Managers respond to the environmental concerns of various stakeholder groups, including customers, the local community, business partners, and special-interest groups. Managers desire the need to be socially responsible and desire to make ecological choices that are reasonable in the eyes of society Proactive approach Managers take the initiative and actively seek out opportunities to enhance the natural environment. They go out of their way to learn about the needs of different stakeholder groups, and they are willing to use organizational resources to promote the interests of the community and the environment

C. Political-Legal includes both the prevailing philosophy and objectives of the various levels of government, as well as their ongoing laws and regulations.

Influence of the political-legal environment on managers

Mainstream view Documentational capitalismcharacterized by an emphasis on detailed contracts, financial reports, management independence and rights, stringent antitrust legislation, rewarding a labour force that is mobile and has transferable skills, short term maximization of financial performance, and the use of stocks options to motivate managers Multistream view Relational Capitalismcharacterized by an emphasis on relational contracts, the long term reputation and financial performance of organizations, employee rights, the need of many different stakeholder groups, and investment in developing the skills of employees.

Influence of Managers on the political-legal environment

Mainstream view Organizations make financial donations directly to political parties in the hope of influencing their decisions, and lobbyists are hired by businesses to influence decisions that are in their clients best interests Multistream view Multistream managers lobby the government for ways to enhance well-being of multiple stake-holders. Managers support initiatives that support healthier relationships between unions and management Managers are less likely to lobby government for regulations that help their industrys short-term bottomline but threaten its long term viability and overall well-being.

D. Economic-Technological refers to how financial resources are used and distributed in a specific country or region as well as refers to the combination of equipment by which the acquisition, design, production and distribution of goods and services are managed.

Influence of the economictechnological environment on managers

Mainstream view Mainstream managers focus on those factors that influence their organizations short term financial interests. Managers try to keep abreast of changing technologies, and they choose those that will maximise productivity and profitability.

Influence of Managers on the economictechnological environment

Mainstream view (Acquisitive economics2)Goal of managers is to earn as much money as possible for their organizations shareholders, and to do it as quickly as possible Managers focus on developing or finding those new technologies that allow better customer service, state-of-the-art products ,and increased efficiency by forming strategic alliances with university researchers

Multistream view Sustenance economics-management of property and wealth in such a way as to increase the long-term, overall well-being for owners, members and other stakeholders. Emphasizes on community-oriented values, longterm multigenerational concerns and stewardship. Multistream managers are always seeking new technologies, but their interests go beyond merely maximising profitability. Multistream approach favors environmentally friendly technology, new computer software and information systems that facilitate team building and sharing information among team members, technologies that allow for financial rewards to be meaningfully tied to team performance rather than individual performance, office space design and technologies that allow for cross-fertilizations of ideas among different functional areas

Think tank-organization that conducts research to inform and influence areas such as social and public policy, technology and defense. It can provide a valuable service to both organizations and society as a whole, but sometimes they appear to favour the business interests

Acquisitive economics to refer to the management of property and wealth in such as way that the short term monetary value for owners is maximised.