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Management Concepts & Organisational Behaviour - Manager And Environment

Direct Action Environment - Manager And Environment

   Posted On :  17.05.2018 09:27 pm

As already understood, an organization is a vehicle for transforming inputs into outputs. The important inputs are materials, equipment, energy, capital and labour.

 Direct Action Environment
 

Suppliers

 
 
As already understood, an organization is a vehicle for transforming inputs into outputs. The important inputs are materials, equipment, energy, capital and labour. The relationship between the organization and the suppliers of these inputs presents the forces in the environment that directly influence the operations of a firm. If an organization is unable to obtain these essential inputs of right quality, quantity and at the right price, it cannot possibly achieve the objectives.
 

Laws

 
 
Virtually every aspect of the business is influenced by the laws of the land. The form of organization, the management and the way how a firm conducts itself in the society are very much influenced by the various provisions of the laws. For instance, The Companies Act, Factories Act, Workmen’s Compensation Act, Industrial Disputes Act, Provident Fund Act, just to name a few, affect the functioning of the business. As a responsible corporate citizen, an enterprise has to comply itself with the provisions of these acts.
 

Customers

 
 
The justification for the existence of a firm lies in the satisfaction of customer needs. In this context, it is appropriate to remember Peter F. Drucker’s observation on the purpose of business. According to him, the purpose of any business is to create a customer. There is no exaggeration that it is customers in the market place who dictate the fortunes of any business. Needless to say that those organisations which neglect the customer expectations and aspirations would find the long-term survival very difficult. Customers’ tastes and preferences are not static, but keep on changing. Mention may be made of some of the changes in the recent past: the cell phone, the preference for quartz watches, audio-video gadgets, various sophisticated domestic appliances, cotton garments, fast foods and so on. Organizations which are adept in identifying the changes in the customers’ attitudes and preferences or which can comfortably respond to the changes would survive and those which fail to take cognizance of changes would ultimately fall on the way side.

Competitors

 
 
Many a policy of the organization are influenced by the competitors. In a competitive environment, the market place is characterized by moves and countermoves. The post-liberalization Indian markets for many products offer an excellent example as to how competition influences the organizations. In the last few years, in almost all the sectors of the Indian economy, competition has tremendously increased. As a result, many firms are forced to wake up from their slumber. They are forced to unlearn many of the practices and attitudes of the pre-liberalization/protection era. Company after company is now redefining its business, rediscovering the markets, talking in feverish pitch about customer service, human resource development and concern for the society.

 

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