Internal and External Factos

Internal and External Factors Jamie Carbary MGT/230 12/14/2013 LaStacy Whitman

Internal and External Factos

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, teams 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 firms 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 firms 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.

Internal and External Factos

The functions are usually affected by the companys environment. The companys environment may be internal as well as external. Globalization is an external factor that is beyond the companys 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 firms 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 firms 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 companys 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.

Internal and External Factos

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 firms objectives (Daft, 2012). Innovation leads to the production of products that meet and exceeds the customers expectations. The ability to meet and exceed the clients 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 employees turnover, which is detrimental to the companys 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 firms development. The issues limit the managements performance of the functions for the purpose of maximizing profits. The moral issues may also act as a

Internal and External Factos

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 firms management will be effective as it will make the company be at the edge in the competitive environment.

Internal and External Factos

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.