Create a 5 pages page paper that discusses environmental factors affecting an organization. No organization of any kind can operate in the absence of environmental constraints or restrictions imposed by the organizational surrounding while managers exercise power. their authority is always limited by the environment. Of necessity then, all organizations must be adjusted to the environment in which they exist.
Every organization has two types of environment i.e.:
– Internal environment.
– External environment.
The external environment of an organization is those factors that are outside the control of the manager but which nevertheless affect the managerial decision-making. They generally affect all organizations within the society and thus, they are not specific to any one firm. These environmental forces include Political-legal forces, Economic forces, Social/Cultural forces. The two most important environmental are the technological forces and the internal environment.
Political – Legal forces .are forces that are associated with the government and the legal system within which a firm operates. .The government can regulate the minimum wages that workers ought to receive, safety in the workplace and insurance.
Political stability is another factor, i.e. organizations will change their mode of trade depending on how stable the political climate is. Presidential decrees also affect business decision-making. Business managers face a multitude of loss that limits their powers concerning legal-political constrains. In the final analysis, an organization usually cannot control what a government does. Sometimes these laws also create new opportunities for the firm. An example is compulsory recycling laws which have led to the mushrooming of the recycling industry.
However, the organization needs to understand that the main purpose of business legislation is to give companies protection against unfair competition, protect the society’s interests from being infringed by unscrupulous firms and also give consumers protection against business malpractices (Dale, 2001).