Management and Company

Topics: Management, Ethics, Innovation Pages: 5 (1628 words) Published: October 4, 2010

Internal/External Factors

Team B

MGT 330

September 20, 2010

Joe Cheng

Internal/External Factors

Companies are being challenged every day with factors that affect their primary management functions. Globalization, technology, innovation, diversity, and ethics are just some of the factors companies are facing that can affect functions of management. Managers are trained to identify these factors and analyze how they will affect the functions of their management. Planning, organizing, leading, and controlling are the four functions managers operate under. Managers will look for signs indicating when of these factors are affecting their management function. In the following paragraph we will discuss how these factors can affect the four primary management function and how managers, through delegation methods, can manage these affects.

Some external factors that affect the four functions of management are; sociological, economic, and political. Some sociological includes; demographics, work ethics, personal values, and general cultures. These external factors affect how the organization’s management team will accomplish the job they are set out to finish. The social environment in every country is different so the organization’s management team has to be able to understand the difference. They must be able to adapt to the country they are in and plan for each particular groups of people. Top managers’ strategic leadership and support plays a critical role in shaping an organization’s values (Springer, 2010). The essential factors of economic and political are; suppliers, competitors, and the customers. Management has to study about the economy and political environment to understand the relationship between the two. Studying the organizations’ competitors, suppliers, and customers will help management make effective decisions. Technology is constantly changing so this has the most affect on a business. The changes in this external environment are very noticeable by the organization. Since there is a chance that the market can change over just in one night, the management team must be able to make quick decision that will help the company to adapt with all of the technological changes.

The internal factors that affect the four functions of management are; human technological, physical resources, and financial resources. The management team is responsible for finding physical and financial resources and uses them efficiently and effectively for the organization. There are not too many organizational resources so the management has to depend of how well they use the physical and financial resources. The management team has to be able to organize all of their resources and use them correctly. In order for an organization to become successful, there are some factors that affect the success. Globalization is used to bring people from all over the world together. Since some organization are going international, this helps them do business anywhere in the world and increase their personal exchange and mutual understanding. The second factor would be technology, which helps management to easily operate without any difficulties. Ethics is the last factor, which are the principle of conduct that every manager must uphold.

The four functions of management can and are affected by many influences in the business world. Each function has an important part to play in shaping the way a business will operate in the global environment. Some of the influences that affect the functions are globalization, technology, innovation, diversity and ethics. To better understand how these influences affect the four functions of business, we need to understand each one a little better.

Merriam-Webster dictionary defines globalization as: "the development of an increasingly integrated global economy marked especially by free trade, free flow of...
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