Factors That Affect Management Function

Topics: Wal-Mart, Management, Target Corporation Pages: 6 (2057 words) Published: September 29, 2010
Factors That Affect Management Functions
University of Phoenix
MGT 330 Organizational Ethics and Social Responsibility
David Mallory
September 3, 2009
The Factors That Affect Management Functions
There are many things that have an effect on the four functions of management; planning, organizing, leading, and controlling. Defined as Enterprise Environmental Factors, or any or all external environmental factors and internal organizational environmental factors that surround or influence the project’s success (PMBOK, 2004), or the overall success of an organization, these factors, which are in many cases beyond the control of managers, create the need for effective managers who can think and perform outside the box. Target Corporation for example addresses these factors and how they affect the four functions of management in specific ways. This paper will identify external and internal factors, what they are and how they are managed through the four functions placing added emphasis on globalization, ethics, technology, and innovation within Target Corporation. Then detailing how delegation is used to lessen the affects of these factors on the functions of management. Internal and External Factors

As noted previously, all factors affecting the functions of management can be categorized as either internal or external. These two categories can be further broken down into tangible and intangible for internal factors and external factors as microenvironment, otherwise known as competitive environment, and macroenvironment (Bateman & Snell, 2009). On the external side, under the competitive environment falls things such as suppliers, customers, and competitors; other organizations with which the company may interact. Under the macroenvironment there is economy, laws and regulations, demographics, technology, and even social influences. Target Corporation has taken a proactive stance on all external factors. One external factor in the competitive environment for Target would be Wal-Mart, a direct competitor. Compared financially; Target only brings in a fraction of Wal-Mart’s revenues (Target, 2009) (Wal-Mart, 2009). However, Target continually outperforms its competitor by retaining a larger percentage of its revenue as net income. This is true even in the down economy. It does this by focusing a great deal on maintaining a good public image, an internal factor. Target has also begun working to affect government decisions, a macroenvironmental factor. The company’s lobbying budget increased more than 740 percent from 2007 to 2008 (Open Secrets, 2009) contributing 11.8 percent when compared to its net income. Again, Target has chosen to tackle this external factor head on in an effort to influence it to their benefit. On other internal factors, Target does not differ nearly as much from their competitor. An intangible example of internal factors, they profess to focus on diversity in their employees. Though this is true overall, they still manage to have certain areas of the country where employees feel discriminated against, and miss treated, based on race or culture. They also have a history of lower than average benefits for their employees (Lydersen, 2006). These elements limit their ability to avoid employee turnover, which in turn increases costs and lowers productivity. Given these examples, a greater focus this internal factor could provide more to their employees, and save money. This is a potential area of improvement for Target to consider. Globalization

First and foremost, globalization describes an ongoing process by which regional economies, societies and cultures have integrated through globe spanning networks of exchange. Globalization is the result of advancements in communication, technologies, information technologies and transportation. Globalization has both a positive aspect, and a negative aspect. Among the negative aspects are that globalization contributes to rapid...
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