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Task environment includes the sectors, which have a direct impact on organization’s ability to achieve its goal.
Traditionally organizational environment is defined as all elements that exist outside the organizational boundaries and an organizational domain is the chosen environmental field of action.
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Organizations now challenge many more difficulties than they used to in the past. They have to operate in a more complex and intense environment. These concepts faced by businesses sometimes create opportunities for them, but they sometimes make the management issues harder. These basic concepts are globalization, intense competition, digitalization, innovation and ethical and social responsibility.
According to Gareth Jones, value creation has three stages: Input, conversion, and output. Each stage of the value creation process is infuenced by the organizational environment. The organizational environment is “the set of forces and conditions that operate beyond an organization’s boundaries but affect its ability to acquire and use resources to create value.”
Behavioral School: Following the classical period, studies of the behavioral school’s current representatives are known as the micro-organization theory. The basic contribution of the behavioral school to the classical management theory is the emphasis on the informal aspects of organizations. While the classical management thought tackles the structural and physical design of organizations, the behavioral school focuses on human relations within organizations. The starting point of the behavioral school is the criticism that the classical school was not humanist (...) The most important studies within this field are Harwood and Hawthorne Experiments. Especially, Hawthorne concludes that productivity can only be increased by the emphasis on the emotional side of the human being and on managerial practices that make an employee feel important. In short, human behavior, human relations, motivation, managerial change, and development are the topics examined in this period, which maintained its importance until the 1960s. Afterward, a system approach that focuses on both scientific management and behavioral school at the same time emerged within the modern management view.
Core product is the core value expected from a product. For example, the core value of a mobile phone is communication. The core value should be transformed into an actual product which includes product features, quality, and design as well as packaging and brand. For instance, Iphone is an actual product. Augmented product consists of warranty, after-sale service, payment options, and credits. In the case of smart phones applications may be part of the augmented product and may make a phone more competitive.
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