Organizational Process

The organizational environment is the set of resources surrounding an organization, including inputs
(e.g., raw materials and skilled employees); resources to transform inputs (e.g., computers, buildings,
and machinery); and resources (e.g., customers) Organizations compete for the scarce, needed
resources. There is much uncertainty about obtaining needed resources. Organizations design their
structures and cultures in ways to secure and protect needed resources. Technology is the second design
contingency an organization faces. Technology refers to the combination of human resources (skills,
knowledge abilities, and techniques) and raw materials and equipment (machines, computers, and tools)
that workers use to convert raw materials into goods and services. Each job is part of an organization’s
technology. An organization must design its structure and culture to allow for the operation of
technology. Organizational processes develop plans of actions for competing successfully by obtaining
resources and outperforming competitors. These plans of actions are strategies. To attract customers, for
example, organizations can pursue the following strategies.