Internal and External Factors that Affect the Four Functions of Management

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In this paper I will explain how internal and external factors affect the four functions of management: planning, organizing, leading, and controlling. I will also include specific examples regarding globalization, technology, innovation, diversity, and ethics. Internal and external factors affect all business. Normally internal factors originate from inside the control of the organization, like, mergers, board of directors change, or a hiring of a new chief financial officer (CEO). External factors are often caused from external forces beyond the control of the organization, like market conditions. When internal or external factors affect any of the four functions of management, the function affected will need to evolve to continue to be effective. For example, when an external factor of changing market conditions effect planning, the management will need to actively make changes to the goals and activities that an individual, work unit, or the organization itself will pursue. Internal factors that can effect planning would be when the company goes through a merger, acquisition, or when it removes and hires a new CEO, that has a “new idea” on the direction the organization should pursue. When internal and external factors affect the second function of management, organizing, it will also have similar effects as it does on other functions of management. When internal factors affect organizing, for example, when a company experiences a significant loss of revenue or stock price resulting from an internal factor such as bad management then the organization of the human, financial, physical, informational, and other resources need to be adjusted to compensate for the change. An external factor effecting organization would be if the ... ... middle of paper ... a widespread issue that has plagued the brand since the introduction of the XBOX 360. Diversity and ethics are important in all organizations. While they are completely different, I would consider them in the same category when concerning a company’s ability to create and maintain a positive culture within an organization. Diversity allows an organization to have a broader pool of possible talent. This diversity will also need to be accompanied by ethical business practices when concerning the way employees are treated and what rules have been enacted to provide a “level playing field” for all employee’s across all backgrounds. Ethics are also important in the planning phase of management. Ethical business practices as well as corporate responsibility should be factored and reviewed before any implementation of the planning phase of the functions of management.
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