Republic of the Philippines

Nueva Ecija University Science and Technology

General Tinio St., Cabanatuan City

GRADUATE SCHOOL

MASTER OF ENGINEERING MANAGEMENT

Reaction Paper in Chapter 02

In

EnM 211 – Organization and Management

Second Semester AY 2021-2022

Prepared by:

Engr. JONAS C. DIZON

MEnM Student

Submitted to:

Engr. Feliciano L. Bolisay Jr., PhD.

Subject Professor
1. Describe the six external environment components. Why is it important for

managers to understand these components?

The demographic component is concerned with the population and the characteristics of

that population. Suppose you want to be a successful manager. In that case, you must grasp the

links between each age group, gender, race, educational attainment, geographic area, and other

aspects that might influence the choices that are made inside the firm. The technical component,

a component of the external environment, is concerned with advances, whether scientific or

industrial. The use of technological innovations may assist an organization in accomplishing its

goals more quickly. Still, they can also hamper progress if the business does not keep up with the

constantly evolving technologies. The Economic component of the organization contains

variables that are dependent on the financial side of the organization, and the status of the

economy has an impact on the organization's operations. Increased unemployment and a

significant drop in income are the most apparent consequences of the declining trends, virtually

responsible. It is also essential for a manager to consider the sociocultural component of an

organization because the attitudes, traditions, and behavior of the people who are crucial to the

achievement of the organization's goal have a significant impact on the dynamic of the

organization's environment. They must be responsible in their management of the situation and

in taking into consideration the culture of its members.

The local and international legislation must address the political environment must also

be considered. Politicians' policies impact companies and an intelligent manager understands

how to change the organization's approach to the objective to achieve success. Global

Component is the last external environment component. The manager has a responsibility to

keep track of the company's challenges, whether they are local or international. Understanding

the larger picture enables managers to anticipate and adjust to developments that will impact

their team and the business. In restructuring or recalibrating a manager's attitude to challenges

and goals, these components are critical because, if these variables are not considered, the

organization's effort to achieve its objectives would be significantly hampered. They can have

negative consequences for the operation, its personnel, and the goal itself because these factors

are external and cannot be controlled. However, these external factors abovementioned can use
them to track changes and minimize errors within the organization, as well as to protect the

organization and its people from events that changes can mitigate.

4. Why is it important for managers to pay attention to demographic trends and

shifts?

Managers need to be aware of demographic changes for their companies to target a

specific age group for a particular product. Demographic information provides specifics about

individuals and locations. The information gathered is utilized to gain understanding and

perspective. It aids in analyzing data and the presentation of information in a relevant and

understandable manner. It also provides solutions to a wide range of issues that a company may

face.

For example, where would be the best location for a company? Although this subject

seems to have nothing to do with demographics, we may make strategic judgments based on

demographic data gathered via research.

Demographic information, in a nutshell, assists managers in determining which managers

should target goods of the firm. Demographic will reflect the same in the market's trend as well.

Additionally, it is necessary to modernize the company since the demand may alter over time.

6. “Businesses are built on relationships.” What do you think this statement means?

What are the implications for managing the external environment?

The phrase "Businesses are based on relationships" states that to run successfully, every

company must establish strong connections with each stakeholder in the organization. Because

of the ease with which information is communicated and transferred, this relationship contributes

to more efficient performance. It increases productivity—the more positive the relationship with

the external environment, the greater the likelihood of succession.

Following are the implication of managing the external environment:

1. It helps in understanding opportunities and takes advantage of it for better earnings and

future.

2. Good relationships with external environments help in creating a good image and brand

value for the firm in the market.

 3. Strong bonds with an external environment helps in attracting a large number of investors

and arranging funds.

4. It gives a unique identity to the firm and creates long-term goodwill.

5. It gives a chance to firms to understand the demand and needs of customers and produce

accordingly.

8. How is an organization’s culture formed and maintained?

Through the vision or purpose of an organization, the culture of that organization

developed. It is the culmination of the founder's beliefs, conventions, prejudices, and the group's

collective experiences. The fact that the founder has a specific concept that they want to convert

into reality creates a predisposition in which the founder has a particular approach to bringing

that idea to fruition—the prejudices developed by the founder impact the young and tiny

organization, as well as its members. Because of the organization's internal practices, the

experiences that members have contributed to the construction of the company's culture as well.

The organization's culture is alive with consistency, and education is required. Employees learn

and understand the organization's culture through stories, traditions, rituals, objects, symbols,

language, and other means such as rules and policies. The culture of the organization is

maintained through consistency and education. This component contributes to the participant's

ability to connect and grasp their experiences.

10. Pick two organizations that you interact with frequently (as an employee or as a

customer) and assess their culture according to the dimensions shown in Exhibit 2–

4.

I worked in the fit-out industry for a while, and VSI Inc. was a leader in promoting

organizational cultures at the time. We have received training in occupational and safety health

regulations from the very first day of work that we have been here. There is no charge for them

to get free training in management and supervision and the approach of working towards

innovation. The organization has a well-established reputation for producing high-quality work

and possessing extensive management experience in terms of stability. Rather than being

aggressive, the organization was team-oriented, and we all worked together to attain our

objective more efficiently and effectively. As a Technical facilitator in DSWD, we have training
in Engineering and Procurement. We have a very organized staff and we worked as one. DSWD

has a stable organization and encourages us to take initiative to take the risk and innovate.