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Princples Of Management Essay

1247 words - 5 pages

* The Organization and It's Environments:
In order to achieve an organization goal it must understand the basic elements of its environment to properly maneuver among them. Specially, a key element in the effective management of an organization is determining the ideal alignment between the environment and the organization and then working to achieve and maintain that alignment.

There can be two types of environment in an organization. These are –

1. External Environment
2. Internal Environment

1. External Environment: An external environment consists of two parts. It is everything outside of the organization boundaries that might affect it. It has two part which are ...view middle of the document...

It is important for three reasons. Firstly, the legal system partially defies what and organization can and cannot do. Secondly, pro or anti business sentimental in government influences business activity. Finally, political stability has ramifications for planning.
v. The International Dimension: The international dimension is the extent to which an organization is involved in or affected by business in other countries.

b. The Task Environment: The impact of the general environment is often vague, imprecise and long term most organizations prefers task environment because it provides useful information more readily than general environment does. It’s a complex ideal including competitors, customers, suppliers, strategic partners and regulators.

vi. Competitors: An organization that competes with other organizations for resources. The most obvious resources that competitors vie for are customer dollars.
vii. Customers: The second dimension of the task environment is customers. Customers are those persons who pay many to an organization’s products or service.
viii. Suppliers: In modern era every organization must depend on other organizations products. They supplies products for that organization in order to make profit and good relation with the organization and its customers
ix. Strategic Partners: An organization working together with the one or more other organizations in joint venture or other partnership is called strategic partners.
x. Regulations: Regulations are elements of the task environment that have the potential to control, legislate or otherwise influence an organization's policies and practices. There are two types of regulations. Firstly, regulatory agencies which is created by the government to protect the public from certain business practices or to protect organization from one another. Secondly, interest groups. They are organized by their members to attempt to influence organizations.

2. Internal Environment: Internal environment consist of conditions and forces within the organization. Internal environment is consists of owners, board of directors, employees, physical work environments.

c. Owners: Owners of a business are those people who can legally claim properly rights to an organization. Owners can be single, partners, or become a stockholder.
d. Board of Directors: Board of directors are governing body elected by the stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best servers the stockholders interests.
e. Employees: Employees are another major element of a company who can change nature of the work force, provide greater flexibility to managers.
f. Physical Work Environment: It is the final part of internal environment. It’s the facilities of the people who are working in the company. These facilities are large rooms, well arrangements,...

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