Environmental uncertainty organization

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Environmental uncertainty organization

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It asks if the firms take into account the uncertainty of the environment while planning their product-marketing organization structure. Nowadays organizational environment is changing rapidly, and in the future the changes will be even faster.

Many marketing plans will fail because of this uncertainty. Marketing organization structure should be flexible Environmental uncertainty organization to allow product manager to react quickly to market changes.

Traditionally organization structures have been vertical, which structure is not as well equipped to changes than organizations with lateral power-sharing. So there needs to be made some changes according to organizational models to replace the bureaucratic hierarchical organization models.

When concerning a marketing plan in firms, the key agent is usually a product manager. This much unsatisfaction may be a signal, that there has been big expectations for the product management systems implementation, coordination, structure that have not been reached.

Environmental uncertainty organization

Also the work of product managers could have sometimes been considered as a disappointment. Organization structure The major dimensions in organization structure can be described with these three: The structure-contingency paradigm offers a theory, that when uncertainty is high, the company must have a fluid structure.

Less information the managers have the more uncertain environmentharder it is to make any decisions. This kind of understanding supports the decision making concerning external issues.

Method of this study has been qualitative research. Here is one explain of the questions to measure uncertainty: Authority is needed in order to adapt to the ever changing market quickly.


Product managers working under high uncertainty conditions reported they had more participation. But due to this survey, they still often feel they do not have enough decision-making power.

Decisions are made at a higher level which is often too slow way.

Environmental uncertainty organization

But it is also noticeable that neither the other group of managers working in certain environment thought they had enough authority. Concerning formalization, it seems that when environmental uncertainty arises, there are fewer rules and procedures for managers.

Critique First my opinions concerning to survey. People can perceive it in many different ways. And anyhow, in decision making, some people are of course more uncertain than others.

So the personality should be taken into account as well. Results In my opinion it is very logical that when it some uncertain situation and people are not so sure about their decisions, it is easier to share the authority.

It gives managers more space in the situation that everything goes wrong. This survey was only made for managers working in companies in USA.

If there have been product managers also from Europe, Asia and other parts, I think the results would have been different.

I will give a radical metaphor: Then people do whatever is needed to save their lives. For me the most important finding in this survey is that product managers do not think that they have enough authority compared to their responsibility.

I think this can cause some motivation problems and as it is said by Lysonski et al.It is important to utilize the environmental intelligence to determine the uncertainty and take appropriate actions for the well being of the organization.

Forecasting and Planning: Environmental uncertainty should be used to predict the future course of the environment and . Environmental uncertainty is defined as the rate of change or variability in the organization’s external environment, in which the most significant elements are customers, competitors, government regulations and labor unions.

Environmental Uncertainty in Organization. Define environmental uncertainty and resource dependence. Describe the major ways in which managers can deal with . Define environmental uncertainty and resource dependence.

Expert Answers

Describe the major ways in which managers can deal with high environmental uncertainty and resource dependence. Macro-environmental uncertainty: This is uncertainty in the organization’s general environment, including political, regulatory, statutory, and economic conditions.

This uncertainty has the capacity to reduce an organization’s capability for mapping out and pursuing strategic choices (Miller and Friesen ).

Define environmental uncertainty and resource dependence. Describe the major ways in which managers can deal with high environmental uncertainty and resource dependence. A good answer would base the analysis of environmental uncertainty on Duncan's approach, which characterises uncertainty in the.

Environmental uncertainty and managers’ use of discretionary accruals - ScienceDirect