Functions of Manager, External Environment Impacts on Managers - Essay Example

External Environment Name Date Organisations operate depending on different organisation requirements and conditions that are in place. Organisation should embrace measures and strategies to ensure that an organisation is profitable. Common factors within an organisation are the internal and external factors that shape the way an organisation operates. Therefore, the aim of this paper is to analyse the external environment, definition of external environment, elements of external environment, functions of manager, external environment impacts on managers, and how manager impacts on external environment factoring into consideration some actual organisational and operational examples. Organisations do not operate in a vacuum; organisations are located in different settings that influence its operation. Such settings provide multiple contexts that influence operation of the organisation and strategies to accomplish its functions. In any organisation, there are the employees and machinery that are termed as internal environment while those individuals and settings that are outside the organisation or firm are termed as the external environment. External environment provides an opportunity to determine the way that business operates and the chance of the business accomplishing laid down roles (Bass, 1997). Thus, external environment analysis provides means to understand forces beyond the boundaries of organisation and that are helping in shaping the operations of the organisation. Forces that are beyond the walls of an organisation have huge bearing on what transpires within. This means that the external environment can provide inhibiting and facilitating influences on organisation performance. Multiple influences in proximal or immediate environment form the walls or limits within which the organisation can function effectively; such influences contributes towards defining the organisation and how it articulates what is appropriate and good to achieve. The influences that constitute external environment are technology, social/cultural, administrative/legal, economic and technological (Clinton, 2007). Elements of external environment define an organisation. Expounding on elements of external environment will provide means of understanding better of its fundamental. Legal and administrative factor defines the frameworks and regulations that have been set by a country or government to determine how organisations operate (Posner, 2006). The extent of legal and administrative differs since in one country the legal environment may be very restrictive while in another region or country the legal and administrative environment is more permissive. Any organisation should understand legal/ administrative environment to ensure what is essential and whether an organisation can embrace change. Within the administrative context, an organisation may operate within unique combination of forces that may include non-governmental policy, governmental, regulatory, legal, legislative and international frameworks (Clinton, 2007). Moreover, the fundamentals legal, policy or regulatory provisions that created the organisation affect an organisation. This specific rules and laws usually support or deter the development of an organisation. For example, some provisions or dimensions within legal/ administrative provision that should be followed include constitutional restrictions, determining whether certain restrictions govern the structures and goals of an organisation and determine legislative restriction of some leaders within an organisation. Administrative/ legal factor plays a major role in shaping the provisions and operation of an organisation. Political features in a given region (Pfeffer, 2000) usually shape the administrative / legal provisions. Political environment determines to some extent the way that a business can effectively operate. Factors and consideration should be put in place to determine whether the political features deters or contributes towards the success of an organisation. It is important to understand governmental strategy or development policy/ plans to understand the nature and position of the organisation. For example, it is important to understand the extent in which government supports and contributes appropriate resources in ensuring that an institution operates efficiently. Moreover, stability or instability of a region or a country may determine whether that environment is conducive or prone to failure of business (Pfeffer, 1998). For example, an organisation that is situated within an area that is prone to terrorism or wars may not succeed. An organisation that is located in Somalia may be at a greater risk compared to an organisation that is located in United States. The neighbours within a stable government may provide means on analysing whether the organisation will operate efficiently. A country or government may be in the middle of countries common with wars and civil unrest. The chances of that country been affected by the on-goings of a neighbour unstable country is high (Bass, 1997). Changes in internal political system of a government will determine whether appropriate changes should be instituted. Nevertheless, there is usually a link between the legal system and political system in which a country may be stable but there are numerous provisions and regulations in terms of legal that should be followed. Political system within an area usually determines economic prosperity of that region (Posner, 2006). A politically stable and legal environment may be associated economic prosperity. The type of project that will be introduced will be guided by the economic provisions and development within that region. For example, labour laws, inflation and opportunity costs usually contribute or influences the way an organisation operates. Additionally, other economical factors are taxation, interest rates, government spending, exchange rates, general demand and global economic factors (Clinton, 2007). Taxation and regional economic factors usually determine the relationship between countries and trade partners. For example, it is easy for Germany to work with England rather than the relationship between England and Japan because of economic policies within European Union (Ciulla, 2004). Technology is also an external environmental factor that contributes to the approach that an organisation takes to accomplish certain business. The type and level of technology within the organisation give insight to understanding an institution. Most organisations depend on national infrastructure i.e. transport, water and power while others will be guided by different technological requirements. Therefore, it is important to analyse internal technology and surrounding technology to understand the position of the organisation relative to other factors and competitors. Moreover, it is crucial to assess new technology, how it comes in/ its application and how difficult is it to acquire. The rapid change in the production innovation and production process also affects the way that business will operate and its requirement of technological adjustments (Bassi, 2004). Most of the external environmental factors are guided by social and cultural requirements. The forces within the cultural and social at regional, national and local influences the approach an organisation takes to accomplish a given task and contributes towards the outcomes and effects of a given approach. How households, communities and consumers behave and their beliefs may shape or impair the way business is fulfilled (Burns, 1978). Cultural factors shape the way business is accomplish, for example, Arabs way of banking without requiring interest rates – riba following the Sheria laws, is different from the capitalistic economy that requires payment of interest rates (Schyns and Meindl, 2006). Thus, working in an Arabic country such as Egypt requires different understanding of cultural and social factors compared to working in a capitalistic economy such as that of United States. Cultural and social factors come handy with ethical factors. Ethical factors are those conditions or fundamentals that are regarded as morally wrong or right for accomplishing business requirement (Goethals & Sorenson, 2006). For example, is it ethically right to trade with countries that do not support fundamentals of human rights (Schyns and Meindl, 2006)? Organisations come with different requirements, individuals and teams come together to accomplish certain duties. However, in most instances, these individuals and teams possesses different internal focus and personality, and thus require a manager to balance between the differences in a team with their similarities to ensure that the set goals are achieved. Thus, a manager will provide guidelines and direction in ensuring that a strong team is championed in ensuring that the specified goals are achieved (Hiebert and Klatt, 2001). Generally, a manager should have skills of persuading, influencing and bringing together different individuals into forming coherent teams to fulfil tasks. A manager should possess negation, listening, organisational capabilities and communication skills. Therefore, a manager should not be an obstacle in achieving the goals of an organisation. A manager should also possess motivational strategies. Motivated employees improve on their productivity and thus a manager should include motivational strategies in the way that their business is accomplished. In developing the motivational strategy, a manager should balance between employee requirements, organisational capabilities and aimed goals (Posner, 2006). Managers are supposed to ensure that the value of stakeholders is increased. This means that a manager should comprehend the operation environment through understanding what is happening, should be able to seen in advance threats and opportunities, and develop strategies that will decrease the adverseness of threats and maximise benefits associated with opportunities. Moreover, managers should have analysing capabilities in that they use historical information and formulation of future strategies (Miner, 2005). The future strategies should be based on micro and macro environmental factors in developing complex interactions that ensure the requirements of an organisation are maximised. Moreover, a manager should understand that the profitability of an organisation could be maintained only if the consumer value is improved. This means that a manager should formulate and effectively implement strategies that fulfils the requirements on the ground through correlating the ‘whats’ from the ‘hows’ of the organisation is ensuring that the organisation achieve its objective (Clinton, 2007). A manager should implement the strategies in terms of phases through providing means of evaluating and formulating measures of correcting the failures into returning the strategy into the actual path. Hence, managers should understand imperfections are common within any strategy, but the imperfections can be corrected by appreciating appropriate change. Thus, the strategies and views of a manager fulfil short and long-term requirements with periods of celebrating success after each period or phase (Posner, 2006). External environmental factors influence to different extents the way managers accomplish their tasks. The external environmental elements determines the strategies and approaches that a manager will incorporate in their decision making process. Changes in administrative/ legal environment will require the manager to determine the influence and impact of the change to the entire organisation (Jennifer, 2007). Introducing new policies and legislative requirements require that the manager embrace the changes so that the organisation cannot face any legal confrontations. For example, a manager in an alcohol sector, say, the age limit of drinking is increased from eighteen years to twenty-one years; the manager should incorporate this information in their marketing and operation strategies. Political position will determine whether the organisation introduces new measures such improvement of security or strategies that will reduce the impact of political conditions. Economic conditions may provide measures in which a manager will ensure that the organisation floats. For example, during the recession periods, a manager may lay down some employees and introduce measures that will reduce overhead expenses for the organisation. Technological changes and the current move of industries from traditional way of business to computer-oriented operation provide numerous avenues for organisations and managers to introduce wide reaching changes (Schyns and Meindl, 2006). Industrialisation and modernisation has required the use of numerous technology provisions to increase the the organisation competes and can withstand forces associated with competition. A manager will be forced to introduce the measures and guidelines to ensure that the appropriate technology is introduced, and used to fulfil the requirements of the organisation. Generally, a manager function is to ensure that external factors are addressed to in advance and appropriate measures incorporate to ensure that the organisation fulfils its goals (William, 1999). It is not only the external environment that impacts on the functions of managers, but also the manager can influence the external environment. Managers should understand their internal requirements so that they can influence external factors. The factors that a manager can influence are the technological, legal, and economic easily. For example, a manager may determine the appropriate technology that suites the operation of the organisation (Jennifer, 2007). Specially designing appropriate technology for the operation of the organisation will ensure that the business operates within the competitors’ standards. In terms of legal space, usually before a government introduces new legislative or directives, the government usually discusses with stakeholders. This space will provide managers to influence external environment factors and thus the external factors will suite the manager. Even though to some extent it is had to influence the social and political factors, it is imperative for the managers to introduce measures and strategies that will ensure that the government and society appreciates the contribution of the organisation (Schyns and Meindl, 2006). For example, a manager may guide an organisation to produce products and services that conquer with the requirements of political situation and societal/ cultural requirements. Even though, the external environment impacts the way that a manager function, a manager can employ strategies to ensure that the external environment variables boosts operations and profitability of the organisation (Ulrich & Zenger 1999). Generally, organisations do not operate in a vacuum, but operate in an environment that there are various variables. These variables can be grouped in terms of internal and external environmental factors. Internal environment can be controlled by the organisation but external environment is beyond the control of an organisation. Some of the elements of external environment are social, cultural, administrative/ legal, political, economic, and technology. Moreover, managerial function is to ensure that an organisation is profitable and increase stakeholders’ value. This can be achieved through ensuring that planning, organisation, strategising, implementation and reviewing operation of an organisation. The external environment may influence the function of a manger and at the same time, the manager may influence the way external environment affects the organisation. References Bass, B.M. (1997). From transactional to transformational leadership: Learning to share the vision. New York: Prentice Hall Publishers. Bassi, L., Harrison, P., McMurrer, D. & Ludwig, J. (2004). The Impact of US Firms’ Investments in Human Capital on Stock Prices. New York: New York Publishers. Burns, J.M. (1978). Leadership. New York. Harper & Row. Ciulla, J. (2004). Ethics, the Heart of Leadership. London: Greenwood Publishing Group. Clinton, B. (2007). Giving: How Each of Us Can Change the World. New York: Knopf Publishers. Goethals, G. and Sorenson, G. (2006). The Quest for a General Theory of Leadership. New York: Edward Elgar Publishers. Hiebert, M. and Klatt, B. 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