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
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.
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.
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.
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.
Tags : Management Concepts & Organisational Behaviour - Manager And Environment
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