Assignment 2: The effects of internal and external factors on four functions of management Introduction:
In the world of management, there are many internal and external factors that affect the effectiveness and efficiency of management. For a management job, a manager has missions to deal with the following functions: Planning, organizing, influencing, and controlling. Hence, it is crucial for any managers to understand those factors clearly and comprehensively to conduct their jobs with expected outcomes. This paper will emphasis on how internal and external factors influence the four functions of management through the five factors, namely globalization, innovation, diversify, technology, and ethics. Moreover, this paper will take some company in reality as examples to prove theoretical points of view. Globalisation affects significantly four functions of managements; however organising and influencing are the most noticeable factors which attract managers to maintain its power and targets oversea. Meanwhile, diversify is normally considered as a part of globalisation. However, diversify is one way to reduce risk in operating; there are many ways of diversifying, and with each ways, there is a relative diversifying strategy. Accordingly, each strategy will affect four functions of management differently. In addition, technology affects the functions in the way that improving the effectiveness and efficiency of each function. For example, in controlling process, computing pregame can be useful to maintain the work-attending rates. Similar to technology, innovation noticeably affects the productivity in businesses. A new idea in products can drive the key concepts of planning process; Apple with a concentration on innovation bases on the creatively forehead products: Iphone, Ipad. Lastly, ethics affects the influencing function with highest outcomes, but it also influences other function, organising for example with the consideration of ethical issues to build the operation management process. Globalisation:
First and foremost, globalisation is an ongoing process in which an international spanning network of exchange intergrades step-by-step regional economies into one globally bigger market. There is widely known that a company should have a clear plan or set of actions, which comes along with the aim and target of a company, in order to obtain success. Hence, this factor has a huge effect on a multinational corporation, which aims to go globally. For planning function, a manager should consider the following common components, which are different with a domestic company: import/export, license agreement, direct investing, and joint ventures. These elements are related to the term of new market. Planning for newly particular market, thus, is a key factor for success. This is due to the fact that with each market, there are differently typical features resulting from economical, cultural, political environment within the market. The features, hence, affect the four components of a multinational company. At the same time, the process of organizing is also affected significantly in the way that changes the decision for management attitude with a determined planning for a market. In term of influencing, globalisation affects this function through cultural differences. Based on particular cultural system in the market where company conducts businesses, the ways of influencing can be modified to meet the difference. For example, managers in foreign operation must have a standard knowledge in term of language in order to have an effective communication, which is important for present influencing on employees. Controlling is also complicated in globalisation since it relates to currencies difference and geographical distance. Hence, the choice of management in this term to maintain management power may be reinvoicing centers. This approach is used to avoid scrutiny of government. (Sharpiro, 2006)
The example for this...
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