How Internal and External Factors Impact the Four Functions of Management MGT/330

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In order to illustrate how internal and external factors impact the four functions of management -planning, organizing, leading, and controlling- our team has chosen General Electric (GE) Company as an example. GE has been in business since the year 1890, when the company began operating under Thomas Alva Edison (inventor of the incandescent light bulb). Since then GE has growth and mature as one of the greatest multi innovator firm in business history, in addition GE has become an international company expanding its products and services around the world.

Therefore we will explain how external and internal factors like globalization, technology, innovation, diversity, and ethics at national and international level will impact the way GE managers apply the four functions of management. In addition we will talk about how delegation helps GE managers to minimize and manage these factors.

First factor globalization, "Is the increasing interdependence, integration and interaction among people and corporations in disparate locations around the world" (Wikipedia 2007, p. 1).

GE has established its business in 59 countries in all five continents of the world; in addition they keep innovating with products and services which adapt to the specific needs of other countries.

GE web site illustrates its business expanding with an example of the contract obtained with the Saudi Arabian electric company. GE will provide nineteen GE frame 7FA gas turbine generators which will be used to provide electric energy to different territories of the Saudi population. In addition GE will offer, "Technical advisory services, customer on-site training and performance testing" (GE Web Site 2007). Therefore, the four functions of management -planning, organizing, leading, and controlling- will have their individual impacts due to GE's globalization.

Planning will have to be developed by a team compose of Saudi Arabian electric company managers and GE managers, therefore differences in vision and strategies may be a barrier to achieve goals. In organizing human force and information will be in must part from Saudi Arabia, so managers willhave to be trained to be able to achieve operations with a different culture. Leading employees to their higher levels of performance will have to be done in teams; one to operate with Saudi Arabian employees and other team with GE employees from overseas. And finally controlling which is very important to assure that everything is going as planned; both companies will have their issues like lack of communication, cultural differences, and laws obstacles.

In conclusion, GE globalization will impact the four functions of management; therefore GE manager's delegation of authority will be essential to minimize such impact. By training employees and delegating authority GE managers will benefit taking much pressure out their shoulder, letting employees that know their environment and culture take responsibility and pride on their work.

Technology is the second factor, GE has various teams of employees that work in the area of technological infrastructure acquisition that try to know in a more profound way the companies concerns by offering a flexible solution that meets their technological requirements, their financial structures and their actualization needs. GE involved into a conglomerate with an increasing shift from technology to services, and with 11 main operating units. These take care of planning and strategies that can be implemented so the organization can reach the technological breakthrough the desire. Organizing they put in order the steps they want to follow so the main objective can be reach and to have a clear vision of the technological changes they need to implement. Leading the have to be aware of the changes that are going to be made and that every employee can produce with the motivation that technological changes can give then better working conditions by helping the team with a...
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