Impact of External and Internal Factors on the Four
Functions of Management
External and internal factors such as globalization, technology, innovation, diversity and ethics can greatly impact the four functions of management. Functions such as planning, organizing, leading, and controlling can be influenced by these different internal and external factors since organizations need to ensure that they are addressed properly for business success. In addition, knowing the external and internal factors help organizations in identifying the business risks that exist in the environment in which they operate. This paper will focus on United Way, a non-profit community-based organization that was initially found in communities, large and small, across the United States. Globalization
Globalization has invoked extensive debate over its impact and credibility, giving rise to a number of perspectives. Indeed increased globalization has prompted remarkable economic growth around the world. It has led to job opportunities in making the products that are exchanged with different countries. This has produced specialization and comparative advantage. The power of foreign competition has encouraged domestic industries to innovate and it has allowed resources to flow to their highest use as well. Further, globalization is the process that increased the link and interdependence of the world markets and businesses. It is a route of interaction and integration of the people, companies, and governments of different nations, a process motivated by international trade and investment and aided by information technology. The volume of world trade has increased due to globalization. Consequently, more jobs are being available to people and consumers all over the world are enjoying a wider selection of products made from different countries. Today, United Way does not only serve in strengthening families, helping children and youth, and building stronger communities locally. Aside from its 1300 local organizations in America, it has also 3000 organizations in 47 countries. Due to globalization, United Way is able to tap not only the local communities but the international communities as well. The organization is able to help other nations through United Way International. As of 2008, United Way International started new United Ways in some parts of India, Brazil, Peru, France, Argentina and Johannesburg, South East Asia, Latin America and South Africa. (United Way International, 2008). United Way raises sources through donations to be able to help people in need in different countries. Globalization has indeed impacted the four functions of United Way management since the organization now needs to consider developing the budget and business plans for a global organization. United Way’s Founding Committee discusses challenges of what may come up during this process. The committee chooses members that will oversee the board and hires the director and the first management team who will spearhead during the changes due to globalization. Planning, organizing, leading, and controlling an organization that serves a bigger area need to implement changes in its conventional way of doing things to ensure that the same quality services are provided in all the countries that it serves. Technology
Technology impacts management and business decisions on multiple levels. During the December 1999 Conference of the Alliance for Nonprofit Management, Executive Director Roni Posner states: Technology is the backbone of management and organizational effectiveness. It equips people with data and information that can be then synthesized into learning and knowledge; and, this knowledge is what gives organizations more powerful voices in, and greater impact on, community change--the ultimate goal of nonprofit capacity building. (Osten, 2001, para. 1). The United Way implements technological plans to remain competitive with fundraising and accounting, volunteer...
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