ORGANIZATION AND MANAGEMENT

FACTORS INFLUENCING MANAGEMENT

EFFICIENCY & EFFECTIVENESS – are CLOSELY RELATED concepts that manager apply to render excellent performance

EFFICIENCY – is an ability to maximize output with minimum input, and is often referred to as “doing things right” and seek to limit the wasted
input which is costly for business.

EFFECTIVENESS – is the capacity to attain an intended objective or result’ it’s often called “doing the right thing”, the intention is to meet the
desired goal regardless of the amount of input required.

6 FACTORS INFLUENCING MANAGEMENT

 GLOBALIZATION – refers to the phenomenon of growing interconnectivity and interdependent relations between nations
 TECHNOLOGY – is one of the main diving forces of business.advancement in this area have immensely improved business trend
 * SUSTAINABILITY – in a business means that companies should plan and conduct a long time term business operations to ensure
minimal negative impact on the cultural, social and economic aspects of their external envirolment of community
* CORPORATE SOCIAL RESPONSIBILITY – is defined as the willingness of companies to run their business operations in a
sustainable and responsible manner
 PSYCHOLOGY – study of psychology is an important facet in management skills and analyzing customer satisfaction
 ECOSYSTEM – consists of a group of firm that provide related products and services, it is also the emergence of business ecosystem
that has resulted in improvements and innovations in business
 INNOVATION – refers to changing process or creating more effective processes, products and ideas, it has it’s modern meaning “a
new idea, creative thoughts, new imaginations in form of device method”

MAJOR PROBLEMS FACED BY BUSINESS AND FIRMS OF ENVIROLMENT AND P.E.S.T.E.L. ANALYSIS

MPFBB

UNCERTAINTY – it strikes fear in company executives because it’s effects can result in staggering cost.uncontrollable external factor are
always at work like political, economical, technological and social forces.

GLOBALIZATION – these changes may require costly adjustments to cope with the challenges of serving new markets and new trends

INNOVATION – top company executives fear that giving employees more freedom to develop new products and services without supervision
from management may cause them to prioritize individual goals over objectives

GOVERNMENT POLICIES – should adhire to the new governmental, financial, marketing and other aspects of business; such policies may
complicate decisions of top executives

TECHNOLOGY – technological advancements happens fast and companies have to cope by investing in new technologies to take advantages
of their benefits before they become obsolete(out of the market)

DIVERSITY – adds value to products services since different ideas and perspectives are utilized in the process, however this poses a challenge
for companies to bring together a diverse group of employees and work for a single goal

COMPLEXITY – globalization and info technology have led to the emergence of a complex business environment, business transaction have
become more complex because of the diverse culture of people across countries

INFORMATION OVERLOAD – innovations in info technology have led fast paced comm. and the availability of a large amount of info on the
internet, how to deal with the vas info available online is something business executive should consider

2 TYPES OF FIRM INVIRONMENT

 INTERNAL – consist of elements that have a direct impact on business operations’ it includes employees, board of directors and
managers; element of the internal invironment are directly controlled and can be freely modified by the firm itself
 EXTERNAL – consist of factors that have indirect but significant influence on the operations of business, these factors however
cannot be controlled by the firm
a. micro – “operating environment” consist of customers, suppliers, regulatory agencies and competitors, this factors have a direct
revelance to the business operations but are uncontrollable to a certain extent
b. macro – “general environment”consist of the PESTEL of the business organization, factors in this invironment are beyond the
control of the firm but are important determinants of success

PESTEL ANALYSIS