Organizational culture is an organization's believes and values that represent its personality. Just as each person has a distinct personality, so does each organization. The culture of an organization distinguishes it from others and shapes the actions of its members.
Company policies are formal guidelines and procedures that direct how certain organizational situations are addressed. Companies establish policies to provide guidance to employees so that they act in accordance to certain circumstances that occur frequently within their organization. Company policies are an indication of an organization's personality and should coincide with its mission statement.
Mission and vision are both foundations of an organization’s purpose. These are the objectives of the organization that are communicated in written. Mission and vision are statements from the organization that bring out what an organization is set for, what is its purpose, its value and its future. A popular study by a consulting firm reports that 90% of the Fortune 500 firms surveyed issue some form of mission and vision. A Mission Statement defines the company's goals, ethics, culture, and norms for decision- making. They are often longer than vision statements. Sometimes mission statements also include a summation of the firm’s values. Values are the beliefs of an individual or group, and in this case the organization, in which they are emotionally invested.
A management environment within an organization is composed of the elements like its current employees, management, and especially corporate culture, which defines employee behavior. Although some elements affect the organization as a whole, others singularly affect the manager. A manager's philosophical or leadership style directly impacts the employees. Traditional managers give explicit instructions to employees, while progressive managers empower employees to make most of their own decisions. Changes in philosophy and/or leadership style are under the control of the manager. Let us look at some of the important components of a management environment.
These are the factors within an organization that can be controlled and affect the immediate area of an organization’s operations. Though not all factors can be effectively controlled, but relative to the macro environment factors, a visible control can be exercised in this case. Following are some of the micro environment factors: Employees Employees exert great influence on the oorganization. It is imperative to find the right people for each job. Organizations need to motivate employees positively and retain specialized talent. Owners and theManagement Investors are major influencers on a company’s revenue andoperations. It is important that the owners are satisfied with the company. It is the manager's job to balance the aims of the company and the owners. Consumers Competition and consumerism has rendered multiple alternatives for the same product in different brands. Organizations recognize that it is in their own interest to keep consumers happy. Suppliers The suppliers or contractors manage the inputs of organizations and provide products or services that a companyneeds directly or need it to add value to the…
Factors that indirectly impact the organization, its operation and working condition is known as the outer environment or macro environment. These external factors cannot be controlled by the organization. Following are some of the macro environment factors: Political-legal environment The country’s unique political and legal landscape within which organizations function. The effects of this are quite visible. For e.g.: the effect of changing taxes or raising interest rates. Technology Companies have to carefully evaluate the technological developments that it wishes to embrace as it is a cost intensive factor and provide millions in return to one company and take millions from another. Socio-cultural environment The means of communication, the country’s infrastructure, its education system, the purchasing power of the citizens, family values, work ethics and preferences, etc.
There are numerous factors that affect an organization or the management. Managers canmonitor these factors/environments through boundary spanning — a process of gathering information about developments that could impact the future of the organization. Following types of factor/environment affect management: Microeconomic factors Macroeconomic factors To lead an organization efficiently, every organization must know where it is situated, what are its external and internal influences. Microeconomic FactorsMacroeconomic Factors Company-specific influences that have adirect impact on its business operations and success. Components within the control of an organization can be managed and altered. Broad economic forces and global events are out of control of any businessor company. Forces indirectly affect company objectives. Volatile and risky, and a savvy manager must be agile to sidestep a cascading macroeconomic crisis to keep the company intact. For example, a company’s revenue,Earnings and margin. The employees, stakeholders, the production volume of the products and the advertising campaigns…
Management is the act or function of putting into practice the policies and plans decided upon by the administration. Administration cannot be successful without the co-operation of management. The job of each manager is, therefore, to win the co-operation of all those who work under him so that they work for enterprise goals set by administration. Administrators are mainly found in the government, military, religious and educational organizations. Management, on the other hand, is used by business enterprises. The role of a manager is to monitor and shape the environment, to anticipate changes, and react quickly to them.
In this chapter, we will discuss the environment of management and the factors that affect the environment. The terms organization, administration and management are often used interchangeably. Sometimes they are used to mean one and the same thing. Organization is: The “collection, preservation and co-ordination of the elements of an enterprise in An integrated manner.” It brings together various resources of an enterprise into a single harmonious whole. It warrants the utilization of resources for the accomplishment of its objectives. Administration is: The efficient organization or utilization of the resources of an organization to achieve the goals.…
Modern management approaches respect the classical, human resource, and quantitative approaches to management. However, successful managers recognize that although each theoretical school has limitations in its applications, each approach also offers valuable insights that can broaden a manager's options in solving problems and achieving organizational goals. Successful managers work to extend these approaches to meet the demands of a dynamic environment. Just as organizations evolve and grow, employee needs also change over time; people possess a range of talents and capabilities that can be developed. In order to optimize outcomes, organizations and managers, should respond to individuals with a wide variety of managerial strategies and job opportunities. Important aspects to be considered, as the 21st century progresses, include the following: Organizations need to commit to not just meeting customer needs but exceeding customer expectations through quality management and continuous improvement of operations. Reinvent new methods of process improvements and constantly learn new ways and best practices from practices in other organizations and environments. Organizations must reinvest in their most important asset, their human capital. They need commit to effectively and positively use human resources by reducing attrition rates. Managers must excel in their leadership responsibilities to perform numerous different roles.
