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Outside Influences on Management Control - Essay Example

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In a modern context all organizations are getting affected by social structures and cultures from which they emerge. In fact, organizations are complex and external influence on these organizations has always been fascinating for those who want to figure out assumptions on how organizations functions. …
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Outside Influences on Management Control
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Download file to see previous pages Therefore, this project description will objectively describe the influence that external environment may have on management control (Horch). The influences will include debt crisis, Affordable Care Act, policy, economic conditions, changes in technology and demographics. These will be discussed against their effects on management functions such as planning, performance knowledge and budget.
Effects of Policy on Planning
To start with, policy is well understood as a principle that guides decisions and achieves rational outcomes in an organization. It serves as a statement of intent and is implemented as a procedure. Policies are usually formulated by senior officials within an organization to assist senior management in the decision making process (Sr and Swanson).
In this respect, policies help in identification of certain programmes within an organization thereby promoting prudent spending priorities. This further helps in choosing among alternatives that are available and the impact that they may have on planning. Consequently, the intended effects of a policy on planning depend on government of a particular nation. For instance, the government may make a decision to increase the tax and this may prompt an organization to make changes in the planning process to cater for such a change. This helps to lessen the chances that the organization will face hardships and unexpected consequences. ...Download file to see next pagesRead More
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