Internal+and+External+Factors

7/27/2019 Internal+and+External+Factors

http://slidepdf.com/reader/full/internalandexternalfactors 1/6

Internal and External Factos 1

Internal and External Factors

Jamie Carbary

MGT/230

12/14/2013

LaStacy Whitman




The internal and external factors affect the four functions of management. The

four management functions are affected in a number of ways. Planning, Organizing,

Directing and Controlling are the four functions of management that may be affected by

internal and external factors to an organization. The internal and external factors of

businesses are the environment in which the business operates in since it does not operate

in a vacuum.

Planning is the managerial function whereby evaluation is done so as to know

where the business is, and where it wishes to be in the future. After the evaluation, and

keeping the company's goals in mind, the company should consider the most suitable

course of action. Organizing is the second managerial function whereby the management

organizes the resources of the firm. The business is so as to implement the program of

action that was earlier defined in the planning process. In the process, the management

determines the structure of the company establishes and maintains relationships and

allocates the necessary resources.

Directing is the third organizational function. Through the directing part of

management, team’s performance is influenced so as to achieve the organizational goals.

The performance may be influenced by motivating, communicating and leading the team

to work in line with the firm’s goals. Controlling, which is the fourth managerial

function, is the function of ensuring that the performance standards are met. The

performance standards are based on the firm’s goals. The management evaluates and

reports the work performance and compares the two; standards and the reports of the

work performance, so as to come up with corrective measures.




The functions are usually affected by the company’s environment. The company’s

environment may be internal as well as external. Globalization is an external factor that is

beyond the company’s management control. Globalization may affect the functions of

management either positively or negatively (Antonelli, 2011). Globalization may make it

difficult to determine where the firm will be in the future. The planning process would be

difficult since the evaluation of the firm’s current position covers a large scope.

Management also has a wide net of resources at their disposal. The effectiveness of the

business process will be increased since more efficient communication methods, general

with globalization, will be adapted. The business methods used by other successful

international companies will be adapted to the advantage of the firm.

Technology is an internal part since the firm’s management may control it.

Technology makes the business environment very dynamic. It becomes very easy for a

business to be rendered obsolete if the firm does not adopt a new technology. For

instance, due to the Internet technology, it may be very difficult for the management of

an organization to control or rather set performance standards. That is because the

company’s employees, finding the standards difficult to attain, may easily access

information on the standards of other firms.

Different employees from different companies share their work experiences

through many different sites. Through the site, the employees get a lot of information

from other employees, some of which may be misleading. Technology may also affect

the management functions positively since the Internet technology allows for

collaboration and easy information that leads to efficiency in performing the functions.




Innovation changes the way things are done and brings with it a new experience.

When undertaking the management functions, the management puts great focus on the

firm’s objectives (Daft, 2012). Innovation leads to the production of products that meet

and exceeds the customer’s expectations. The ability to meet and exceed the client’s

expectations requires changes in the performance of the management functions. When

that kind of product is introduced to market, the attention shifts to the new particular

product. The management of firms in the industry is with a difficult task of competing

with the competitor product. The management function thus becomes difficult since

Setting goals and standards becomes hard and unpredictable.

Diversity is an external factor that affects the management functions. With as

many options for the customers as they have, the management functions become more

complex as it takes more effort to maintain the customers (Dyck, & Neubert, 2010).

Employees do not have to work for any single type of employer. They do have a choice.

When performing the managerial role, the managers are thus left with few options and

power over the employees as a slight exaggeration of the functions may lead to a high

employee’s turnover , which is detrimental to the company’s goal.

The management functions are greatly affected by moral issues. Ethical issues

limit the level of planning, organizing, directing and controlling functions of

management. A high level of cautiousness is practiced while performing the managerial

functions so as to avoid getting into law suites. The law suites are rather costly and

unhealthy for the firm’s development. The issues limit the management’s performance of

the functions for the purpose of maximizing profits. The moral issues may also act as a




guide of what the society expects of the firm. That may lead to an efficient performance

of the functions.

The environment in which the firm operates affects the companies operations and

performance. The management should ensure that the factors are considered and

observed when performing the functions. When there is a close observation of the

environment, the firm is likely to convert the threats and weaknesses of the firm into

strengths and weaknesses. By doing that the firm’s management will be effective as it

will make the company be at the edge in the competitive environment.




References

Antonelli, C. (2011). Handbook on the Economic Complexity of Technological Change.

Cheltenham: Edward Elgar Pub.

Daft, R. L. (2012). Management . Mason, Ohio: South-Western Cengage Learning.

Dyck, B., & Neubert, M. J. (2010). Management: Current practices and new directions.

Boston, MA: Houghton Mifflin.

Internal+and+External+Factors

Documents

Transcript of Internal+and+External+Factors