Abstract
The environment in which a firm operates has always been considered one of the most important influences in the shaping of a firm’s organizational structure, whether by means of a strategy intentionally developed by management or by influences management had not foreseen. Moreover, in the same way that changes have occurred to businesses with regard to the automation technology that they use, substantial changes in the environment that influence organizations have occurred as well. This chapter discusses those changes. The works of great thinkers from the 1960s to the present are reviewed herein. Some of these thinkers are respected for their courage to present future trends, others for characterizing and summarizing quite well the past and the present situations concerning the world of organizations and society as a whole. The reader will note the great influence of Manuel Castells’ work on this chapter, not only for the innovative ideas he presents, but mainly for the synthesis, the theoretical and empirical bases, and the updated discussions.
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- 1.
Comments on these possibilities are presented in Chap. 7, on strategy. Anyway, it can be said that strategy is an intermediate element between environment and the organization, including its structure.
- 2.
Philip Selznick and Talcott Parsons are references in this aspect.
- 3.
The systems approach considers the organization as an open system, once it keeps strong interaction with the environment it operates. Thus environmental, or external, changes lead to internal changes, including changes in the structure (KATZ, Daniel, KAHN, Robert L. Psicologia social das organizações. São Paulo: Atlas, 1976). The contingency approach presents researches showing the influence of the environment on the organizational structure (BURNS, Tom and STALKER, George Macpherson. The management of innovation. London: Tavistock Pub, 1966 and LAWRENCE, Paul R. and LORCH, Jay W. As empresas e o ambiente. Petrópolis: Editora Vozes, 1973). Scholars of strategy and planning offer many prescriptive models to analyze the environment and to make decisions based on such analysis.
- 4.
This division can be seen in many studies on planning and in basic and general manuals on management (See, for instance, TAVARES, M. C. Planejamento estratégico: a opção entre sucesso e fracasso empresarial. São Paulo: Harbra Business, 1991 and BATEMAN, Thomas S., SNELL, Scott A. Administração: construindo vantagem competitiva. São Paulo: Atlas, 1998).
- 5.
As for environment, other variables can be analyzed. Henry Mintzberg, for instance, besides complexity and dynamism, analyzes market diversity and hostility. Richard Hall analyzes homogeneity/heterogeneity, stability/instability, concentration/dispersion, domain consensus/dissensus and turbulence. (MINTZBERG, Henry. Criando organizações eficazes: estruturas em cinco configurações. São Paulo: Atlas, 1995; HALL, Richard H. Organizações, estruturas e processo. Rio de Janeiro: Prentice-Hall, 1984).
- 6.
MINTZBERG, Henry. Criando organizações eficazes: estruturas em cinco configurações. São Paulo: Atlas, 1995.
- 7.
This aspect has been warned since Philip Selznick’s pioneer studies (SELZNICK, Philip. TVA and the grass roots: a study in the sociology of formal organization. New York: Harper & Row Pub, 1966).
- 8.
Structures better discussed in the following chapter.
- 9.
These are names used by many authors that are mentioned along this chapter.
- 10.
These are names used by many authors that are mentioned along this chapter
- 11.
As for such periods, two important comments should be made: First: specific events or even specific moments separating the two periods cannot be pointed, i.e., it cannot be precisely delimited when a period ended and the other began. In the same place and at the same time, features of the two periods can be seen together. Homogeneity is presented in this chapter to make easy the presentation of the topics. Second: Although the elements presented in this chapter are treated as conditions or causes for the birth and development of organizational structures, it is important to point out that, either in past or in present, these elements are also affected by organizations. After all, organizations are a constituent part of society, and they influence and are influenced by the environment as well.
- 12.
Such difference between process technology and product technology can be seen in many books on operation management such as SLACK, Nigel e outros. Administração de produção. São Paulo: Atlas, 1997.
- 13.
DRUCKER, Peter F. Uma era de descontinuidade. Rio de Janeiro: Zahar editors, 1974.
- 14.
This is referred to as informacionalism (CASTELLS. Manuel. A sociedade em rede. São Paulo: Paz e Terra, 2001).
- 15.
CASTELLS. Manuel. A sociedade em rede. São Paulo: Paz e Terra, 2001, p. 51 (p. 32 in the original in English).
- 16.
Such Manuel Castells’ comment reminds of Alvin Toffler’s prevision on the incoming of the “prosumer”: the same person would be consumer and producer (TOFFLER, Alvin. A terceira onda. Rio de Janeiro: Record, 1980).
- 17.
Manuel Castells states that “productivity and competitiviness of units or agents in this economy (by it firms, regions, or nations) fundamentally depend upon their capacity to generate, process and apply efficiently knowledge-based information”. See: CASTELLS. Manuel. The Rise of the Network Society, the Information Age: Economy, Society and Culture. Vol I. Cambridge, MA; Oxford, UK: Blackwell. p. 66.
- 18.
Globalization can be discussed through many perspectives, not only the economic one, as it can be seen in Anthony Giddens and Alain Touraine (GIDDENS, Anthony. As conseqüências da modernidade. São Paulo: Editora UNESP, 1991 and TOURAINE, Alain. Poderemos viver juntos? Petrópolis: Editora Vozes, 2003). However, the economic perspective is emphasized here. In other parts of this chapter, other perspectives related to globalization are highlighted.
- 19.
As alerted at the beginning of this chapter, the possible causes of environment changes are not discussed here. However, as for globalization, impossible not to mention the importance of politics and economic agents linked to the Washington Consensus.
- 20.
CASTELLS. Manuel. A sociedade em rede. São Paulo: Paz e Terra, 2001 and FURTADO, Celso. Capitalismo global. São Paulo: Paz e Terra, 1999.
- 21.
CASTELLS. Manuel. A sociedade em rede. São Paulo: Paz e Terra, 2001.
- 22.
The increasing importance of the tertiary sector has been alerted in many studies for long time. (See, for example, BELL, Daniel. O advento da sociedade pós-industrial: uma tentativa de previsão social. São Paulo: Cultrix, 1977; TOFFLER, Alvin. A terceira onda. Rio de Janeiro: Record, 1980). Jeremy Rifkin has recently criticized the capability of the tertiary sector in generating jobs in society (RIFKIN, Jeremy. O fim dos empregos: o declínio inevitável dos níveis dos empregos e a redução da forca global de trabalho. São Paulo: Makron Books, 1995) Manuel Castells criticizes simple analyses concerning the passage of an industrial-based economy to a service-based one. He alerts to the diversity and complexity of the tertiary sector and to the diverse changes that have happened in each one depending on many factors. (CASTELLS. Manuel. A sociedade em rede. São Paulo: Paz e Terra, 2001).
- 23.
Many times, the information economy is not considered part of the tertiary sector, but an independent one: the quaternary sector.
- 24.
In terms of management and business, discussions on the increasing importance of the tertiary sector can be seen in Peter Drucker as well as in Jeremy Rifkin (DRUCKER, Peter F. Sociedade pos-capitalista. São Paulo: Pioneira, 1994; RIFKIN, Jeremy. O fim dos empregos: o declínio inevitável dos níveis dos empregos e a redução da forca global de trabalho. São Paulo: Makron Books, 1995).
- 25.
As alerted in earlier notes, causes for the environment changes are not discussed here, however, as for criticism on the effectiveness in governments' performance, various economic and political agents can be mentioned and the Washington Consensus is a reference in this aspect.
- 26.
Many times it is referred to as Keynesian state, welfare state or positive state (CASTELLS, Antoni. Los limites del estado del bienestar tradicional. In: Crisis economica y estado del bienestar. Madri: Instituto de estudios fiscales, 1989; MAJONE, Giandomenico. Do estado positivo ao estado regulador: causas e conseqüências de mudanças no modo de governança. Journal of Public Policy, v. 17, part 2 may-august 1997, pp. 139–167 and TOURAINE, Alain. Poderemos viver juntos? Petrópolis: Editora Vozes, 2003).
- 27.
Practices discussed, for example, in CASTELLS, Antoni. Los limites del estado del bienestar tradicional. In: Crisis economica y estado del bienestar. Madri: Instituto de estudios fiscales, 1989.
- 28.
These aspects can be drawn from CASTELLS, Antoni. Los limites del estado del bienestar tradicional. In: Crisis economica y estado del bienestar. Madri: Instituto de estudios fiscales, 1989; MAJONE, Giandomenico. Do estado positivo ao estado regulador: causas e conseqüências de mudanças no modo de governança. Journal of Public Policy, v. 17, part 2 may-august 1997, pp. 139–167; TOURAINE, Alain. Poderemos viver juntos? Petrópolis: Editora Vozes, 2003; FURTADO, Celso. Capitalismo global. São Paulo: Paz e Terra, 1999; CASTELLS. Manuel. A sociedade em rede. São Paulo: Paz e Terra, 2001 and OSBORNE, D. e GAEBLER, T. Reinventando o governo: como o espírito empreendedor está transformando o setor público. Brasília: M. H. Comunicação, 1977. In fact, the discussion on this subject is very controversial. Events such as the economic crises of 2008 show the fragility of excluding governmental regulation and even its economic action.
- 29.
These adverse consequences are alerted, for example, in CASTELLS, Manuel. Fim de Milênio. São Paulo: Paz e Terra, 2000; GIDDENS, Anthony. As conseqüências da modernidade. São Paulo: Editora UNESP, 1991 and TOURAINE, Alain. Poderemos viver juntos? Petrópolis: Editora Vozes, 2003.
- 30.
Low qualification when compared with nowadays workers and with the old artisans characterized by Benjamin Coriat, that is, the typical workers of the period before the great division of labor that took place in the modern organizations. (CORIAT, Benjamin. El taller y el cronómetro: ensayo sobre el taylorismo, el fordismo y producción en massa. Madrid: Siglo Veintiuno Ed., 1993). Basic needs are those related to worker survival as the physiological and the safety needs.
- 31.
This phenomenon, which emerged in developed countries in 1960s and 1970s, was caused mainly by the dissatisfaction of skilled workers facing taylorized ways of work (HELOANI, Roberto. Organização do trabalho e administração: uma visão multidisciplinar. São Paulo: Editora Cortez, 1994).
- 32.
Peter Drucker and Jeremy Rifkin alert for this fact (DRUCKER, Peter F. Sociedade pos-capitalista. São Paulo: Pioneira, 1994 and RIFKIN, Jeremy. O fim dos empregos: o declínio inevitável dos níveis dos empregos e a redução da forca global de trabalho. São Paulo: Makron Books, 1995). However, Manuel Castells warns of the large difference between businesses within the tertiary sector in terms of qualification requirements, i.e., some services still require low-skilled workers while others require workers with higher qualifications. (CASTELLS. Manuel. A sociedade em rede. São Paulo: Paz e Terra, 2001).
- 33.
Current discussion on the concept of competence goes in this direction. (see, for example, ZARIFIAN, Philippe. Objetivo competência. São Paulo: Atlas, 2001.
- 34.
GIDDENS, Anthony. The Consequences of Modernity. Stanford: Stanford University Press, 1990, p.64.
- 35.
NAISBITT, John. O paradoxo global. Rio de Janeiro: Campus, 1994, p. 4.
- 36.
NAISBITT, John. O paradoxo global. Rio de Janeiro: Campus, 1994, p. 9.
- 37.
CASTELLS, Manuel. O poder da identidade. São Paulo: Paz e Terra, 2002 and TOURAINE, Alain. Poderemos viver juntos? Petrópolis: Editora Vozes, 2003.
- 38.
Movements in this direction have arisen for long time, mainly those that appeared in Europe and USA in 1960s and 1970s. Obviously, at that time, the reality and the causes were different from the movements related to tribalism and regionalism. However, several similarities can be seen in both cases as the global and ecological awareness, the more qualified people involved, etc.
- 39.
NAISBITT, John. O paradoxo global. Rio de Janeiro: Campus, 1994.
- 40.
The conferences that took place in Rio de Janeiro in 1992 (RIO92) and in Kyoto in 1997 can be considered landmarks in this direction, either in their symbolic aspects (mainly considering the first), or when it comes to the legal and economic consequences for the signatories of the agreements reached (mainly considering the second).
- 41.
Manuel Castells believes that the two facts are associated, however, he does separate analysis for them due to their distinguishing features and importance. (See: CASTELLS, Manuel. O poder da identidade. São Paulo: Paz e Terra, 2002).
- 42.
John Naisbitt sees this fact as reality and gives several examples of it. Alain Touraine sees it as an inevitable fact. Manuel Castells discusses the matter in terms of perspective of it to happen, even demonstrating hope for it to occur. (NAISBITT, John. O paradoxo global. Rio de Janeiro: Campus, 1994; TOURAINE, Alain. Poderemos viver juntos? Petrópolis: Editora Vozes, 2003; CASTELLS, Manuel. Fim de Milênio. São Paulo: Paz e Terra, 2000).
- 43.
These negative aspects are discussed exhaustively in CASTELLS, Manuel. Fim de Milênio. São Paulo: Paz e Terra, 2000).
- 44.
GIDDENS, Anthony. The Consequences of Modernity. Stanford: Stanford University Press, 1990 and TOURAINE, Alain. Poderemos viver juntos? Petrópolis: Editora Vozes, 2003).
- 45.
Discussion on this aspect can be seen in Alfred Chandler’s, Harry Braverman’s and John Kenneth Galbraith’s work. These authors noted that economic and marketing control mechanisms were replaced by administrative ones undertaken by large companies. (GALBRAITH, John Kenneth. O novo estado industrial. São Paulo: Nova Cultural, 1988; BRAVERMAN. Harry. Trabalho e capital monopolista. Rio de Janeiro: Editora Guanabara Koogan S/A, 1987; CHANDLER Jr., Alfred D. The visible hand: the managerial revolution in America business. Cambridge: 1977).
- 46.
GALBRAITH, John Kenneth. O novo estado industrial. São Paulo: Nova Cultural, 1988.
- 47.
The theory of contestable markets advanced classical concepts related to market structure such as perfect competition, monopoly, oligopoly and so on (BAUMOL, W. J.; PANZER, J. and WILLIG, R. Contestable Markets. New York: Harcourt Brace Jovanovich, 1982).
- 48.
DRUCKER, Peter F. Sociedade pós-capitalista. São Paulo: Pioneira, 1994.
- 49.
KOTLER, Philip e ARMSTRONG, Gary. Princípios de marketing. Rio de Janeiro: Ltc Editora, 1999.
- 50.
Aspect discussed in chapter 4, mainly in the item dedicated to the Simple Structure.
- 51.
Aspect discussed in chapter 2 by using mainly Paul R. Lawrence and Jay W. Lorch’s work (LAWRENCE, Paul R. LORCH, Jay W. As empresas e o ambiente. Petrópolis: Editora Vozes, 1973).
- 52.
Peter Drucker argues that the development achieved in the twentieth century occurred within an economic and technological continuity, and the changes that have emerged, although many, were related to a stable environment, because there was great predictability. (DRUCKER, Peter F. Uma era de descontinuidade. Zahar editors. Rio de Janeiro 1974). Charles Handy uses similar concepts of continuity and discontinuity of the environment. For a different analysis of discontinuity, especially in terms of modernity and post modernity, see Alain Touraine and Anthony Giddens (GIDDENS, Anthony. The Consequences of Modernity. Stanford: Stanford University Press, 1990; TOURAINE, Alain. Poderemos viver juntos? Petrópolis: Editora Vozes, 2003; HANDY, Charles. Tempo de mudanças. São Paulo: Saraiva, 1996).
- 53.
See, for example HANDY, Charles. Tempo de mudanças. São Paulo: Saraiva, 1996).
- 54.
Aspect discussed since the 1960s. See, for example, DRUCKER, Peter F. Uma era de descontinuidade. Rio de Janeiro: Zahar editores, 1974. Charles Handy is a more recent reference HANDY, Charles. Tempo de mudanças. São Paulo: Saraiva, 1996.
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Oliveira, N. (2012). The Organizational Environment: From Continuity to Dynamism. In: Automated Organizations. Contributions to Management Science. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2759-0_6
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