Internal environment of business Essay Example

Internal environment of business Essay Example Internal environment of business Paper Internal environment of business Paper The structure and politics of an organization affects the manner in which the organization responds to environmental change. Furthermore, it can be difficult to change cultural attitudes when the nature of an organizations business environment has changed. Along with the external environment, internal environment Of an organization also keep on changing. The five elements of the internal environment which are physical, technological, social, political, and economic, influence how the manager functions will be performed. The physical element of the internal environment includes such factors as air quality, temperature, noise, dust, addition, and other conditions affecting me people health and safety. Managers revealed a high percentage of dissatisfaction with aspects of the physical environment of the workplace. The technological element of the internal environment relates closely to the physical element. It consists of the layout of the workplace; the process by which the work is performed; and the tools, equipment, and machinery used to perform the work. These factors in turn determine both the way work is processed and the requirements of the jobs performed by managers. The way in which work is organized affects interpersonal relations and in traction among the manager and employees within a work area. It influences the formation of in formal work groups and the degree of cooperation or conflict among manager and employees. The social element reflects the attitudes and behaviors of managers. Because of their influential place in the organizational hierarchy, top managers play an extremely important role in determining the quality of the social element. The rules and regulations they devise, the concern they have for employees, the rewards and support they provide, and the tolerance they have for raying opinions are major factors in determining the organizational climate. Politics is an important social process found in all organizations. Organizational politics, of course, has the potential for being helpful or harmful to organizations and individuals. The economic element of a firms internal environment reflects the organize Zions financial condition. The more favorable this condition, the more financial resources the organization will have to support its human resources, including employee compensation and benefits. An organ nations culture is particularly relevant to managers. These constraints are rarely explicit. Its unlikely that theyll even be spoken. But theyre there, and all managers quickly learn what to do and not to do in their organization. The link between values such as these and managerial behavior is fairly straightforward. If an organizations culture supports the belief that profits can be increased by cost cutting and that the companys best interests are served by achieving slow but steady increases in quarterly earnings, managers throughout the organization are unlikely to pursue programs that are innovative, risky, long term, or expansionary. For organizations that value and encourage workforce diversity, the and, thus, managers decisions and actions should be supportive of diversity efforts. In an organization whose culture conveys a basic distrust of employees, managers are more likely to use an authoritarian leadership style than a democratic one. The culture establishes for managers what appropriate behavior is. For instance, at SST. Lakes advertising agency in London, a culture shaped by the value placed on freedom of expression, a lack of coercion and fear, and a determination to make work fun influences the way employees ark and the way that managers plan, organize, lead, and control. The organizations culture is also reinforced by the office environment, which is open, versatile, and creative. An organizations culture, especially a Strong one, constrains a managers decision-making options in all management functions. Managers shape their culture by having an organizational stories typically contain a narrative of significant events or people including such things as the organizations founders, rule breaking, reactions to past mistakes, and so forth. For instance, managers at Nikkei feel that stories told about the companys past help shape the future. Whenever possible, corporate storytellers (senior executives) explain the companys heritage and tell stories that celebrate people getting things done. These stories provide prime examples that people can learn from. To help manager learn the culture, organizational stories anchor the present in the past, provide explanations and legitimacy for current practices, and exemplify what is important to the organization. Corporate rituals are repetitive sequences of activities that express and reinforce the values of the organization, what goals are most important, and which people are important and which ones are expendable. One of the best-known corporate rituals is Mary Kay Cosmetics annual meeting for its sales representatives. Looking like a cross between a circus and a Miss America pageant, the awards ceremony takes place in a large auditorium, on a stage in front of a large, cheering audience, with all the participants dressed in glamorous evening clothes. Salespeople are rewarded for their success in achieving sales goals with an array of flashy gifts including gold and diamond pins, furs, and pink Cadillacs. This show acts as a motivator by publicly acknowledging outstanding sales performance. In addition, the ritual aspect reinforces founder Mary Says determination and optimism, which enabled her to overcome personal hardships, found her own company, and achieve material success. It conveys to her salespeople that reaching their sales goals is important and that, through hard work and encouragement, they too can achieve success. Your second author had the experience of being on a flight out of Dallas one year with a planeload of Mary Kay sales representatives headed home from the annual awards meeting. Their contagious enthusiasm and excitement made it obvious that his annual ritual played a significant role in establishing desired levels of motivation and behavioral expectations, which, after all, is what an organizations culture should do. Many organizations and units within organizations use language as a way to identify members of a culture. By learning this language, me beers attest to their acceptance of the culture and their willingness to help to preserve it. For instance, Microsoft, the software company, has its own unique vocabulary: work judo (the art of deflecting a work assignment to someone else without making it appear that youre voiding it; eating your own dog food (a strategy of using your own software programs or products in the early stages as a way of testing them even if the process is disagreeable); flat food (goodies from the vending machine that can be slipped under the door to a colleague whos working feverishly on deadline); facsimile (actually talking to someone face-to-face; considered by Microsoft employees a technologically backward means of communicating); death march (the countdown to shipping a new product); and so on. Over time, organizations often develop unique terms to describe equipment, key response, suppliers, customers, or products that are related to their business. Managers are free intently overwhelmed with acronyms and jargon that, after a short period of time, become a natural part of their language. Once learned, this language acts as a common denominator that unites members of a given culture. When the financial health of a firm is strong, there is a tendency to expand managers activities such as training and development, employee assistance programs, and recreational activities. If the organization is growing, there is the possibility of expansion leading to manager recruitment, selection, and orientation. Conversely, when financial re sources are low, an organization tends to reduce its manager budget and to cut back the managers services it offers to its employees. The way in which work is organized affects interpersonal relations and in traction among employees within a work area. It influences the formation of in formal work groups and the degree of cooperation or conflict among managers. More and more, technological systems are being integrated with the social sys teems of an organization, creating what is referred to as a esthetically system. Job design is based on human as well as technological considerations.