MANAGERIAL ENVIRONMENTS

The Internal Environment

The internal environment in management applies to something within the organization and under the
company's control. If one factor gives the organization positive benefits, it is known as strength. On the other hand, it
is a weakness if a factor stops the company's growth.

 Human Resources
o The company's greatest treasure is human resources. Depending on the level of expertise, attitudes
towards work or efficiency, the workers can be either a strength or weakness of the organization. For
one, if a business has trained and empowered employees, they are likely to be the biggest asset in
the company.

 Capital Resources
o Financial capital is the resources required to expand and maintain a business. In order to achieve a
production, it is important to invest not just in tangible products such as factories, machinery, tools
and other facilities, but also intangible capital such as marketing, personnel training, etc. Without
having a capital or budget, no business will thrive. They can quickly start their projects if an
organization has a budget.

 Operation efficiency
o It encompasses the practice of enhancing all the operations or practices of the business contributing
to the finished product. Since operational efficiency directly impacts the performance of the
organization, a leader or manager has to better consider his operational efficiency to discover
whether they’re being performed and find out whether or not they are being done in the right way.

 Organizational structure
o To have an effective organizational framework, owners need to carefully consider setting up a
method to operate smoothly within the corporation. The heads of department ought to make sure
that the knowledge flow is widely transmitted to all consumers. In order to guarantee the advantages
of the workers and the corporation as well, relevant laws and regulations are enforced.

 Infrastructure
o Your business is likely to do better with new and high quality infrastructure, reliable electricity,
internet and wifi access, and so on. The better the infrastructure, the more resources your company
has to perform efficiently.

 Innovation
o No business can succeed in the dynamic marketplace without updating fresh innovations and ultimate
progress has been accomplished by technology. Innovation refers to the incorporation of something
new into the industry, with ideas originating from inside the company.

External Environment

On the contrary to internal environment, factors outside and beyond the influence of the business or
organization are influenced by the external environment. Taking into account the external world, leaders and
executives should change their business strategy to make it more adaptable to the external environment.

 Economic situation
o While it is an external factor, the economy is one of the most decisive factors for the company's
growth. Good economy situation may be beneficial for business growth and unfavorable ones can
produce negative effects such as bankruptcy.

 Laws
o Local authority rules and regulations play an integral role in the company's growth. Via their laws and
regulations, certain businesses enjoy positive and consistent assistance from local governments.
There are certain countries that are prohibited from developing such industries by their rules.

 Technological factors
o Artificial intelligence, smart internet searches and other high-tech features have been at the forefront
of many industries for years with all sorts of innovations. Today, it is so important to leaders and
managers that, based on how it is used, technology will be the best friend or worst friend.
  Customer demands
o For any corporation or organization, fulfilling consumer needs is a must. The brand is built for the
needs of buyers. In the modern age, under the control of multiple influences, the face of consumer
preference has altered significantly.

 Competition
o Competition brings innovation, better customer service, complacency and understanding of your own
business to the good side. If you are not prepared to adapt in the competitive market, the business
will be adversely impacted by investors, growing market demands, competitive costs and disloyalty of
consumers.

Conclusion

In conclusion, the performance of a business or agency that results from the internal and external world has
several contributing factors. If a corporation or organization hopes to operate effectively and smoothly, before making
any decisions, they need to consider all these considerations into account.

Reference:

https://www.mageplaza.com/blog/what-are-internal-external-environmental-factors-that-affect-business.html

FOUR MAIN COMPONENTS THAT MAKE UP THE ORGANIZATION CULTURE

Values

Values are general criteria, standards or principles that guide the behavior of an organization members
(Jones, 2010). An organization’s culture consists of outcomes that the organization seeks to achieve (terminal values)
and the modes of behavior the organization encourages (instrumental values). This blend of terminal and
instrumental principles contributes to the success of an organization/ company/ business. It happens when among
group members there are shared values. Shared values can provide a strong organizational identity, enhance
collective commitment, provide a stable social system and reduce the need for bureaucratic controls.

Example: By promoting instrumental values such as working hard, a school whose culture stresses the
terminal value of high achievement for all students could achieve this result.

Heroes

Many successful organizations have their heroes champions. Heroes are made and born. The born hero is
the visionary institution builder like Henry Ford, founder of Ford Motor Company and Walt Disney, creator of Walt
Disney. Created heroes on the other hand, are those the institution has made by noticing and celebrating
memorable moments that occur in day-to-day life of the organization like Thomas Watson, former head of IBM and
Vince Lombardi, the legendary coach of the Green Bay Pacers. Heroes perpetuate the underlying principles of the
organization, serve as role models, symbolize those with the organization and set success expectations that inspire
participant achievement.

Example: In many schools, local heroes-exemplars of core values-provide role models of what everybody is
striving for in the school. These highly dedicated workers come to work early; they are still eager
to meet students and are continually developing their ability.

Rites and Rituals

The routine activities and celebrations which define the organization are rites and rituals. Recognition of
accomplishment is possible by rites and practices.

Example: The Teacher of the Year Award and National Merit Schools. A number of ceremonial rituals may
accompany the appointment of a new superintendent of schools, including press and other
announcements, banquets, meetings and speeches

Social Network
 Using the social network, legends or tales about heroes are conveyed. This network is characterized by
multiple people who play a part in the corporate culture. There are storytellers in each organization who interpret
what is going on in the company.

Reference: National Forum of Educational Administration and Supervision Journal