Internal And External Factors Affect The Four Functions Of Management

Read Complete Research Material

Internal and External Factors Affect the Four Functions of Management

Influence of Internal and External Factors of Management


The internal and external factors which have influenced organizational functions in a lot of ways are ethics, diversity, innovation, technology and globalization, which have significant impact on laying out organizational functions, and can have a great impact on the organization's well. The four functions of the organization include; planning, organizing, leading and controlling. The external and internal factors can be strongly influence all the four functions of the organization as the organization are required to make sure that they are properly addressing all their functions in order to achieve their goals and organizational targets and for the success of the business. Additionally, these internal and external factors assist the company in many ways for identification of the risks in the business process and the environment (Coyle-Shapiro, 2004).

Functions of Management

Source: Google Images


Under the function of planning, the main emphasizes is given to:

Analyze a situation to extract meaningful data

Determine the nature and direction of action

Establish benchmarks and indicators

Determine the outcomes and objectives

Whatever the business model favored by a company, the transformation process to clean the systems of the company is always more or less influenced by internal factors (corporate functions) and external (partners, environmental factors). Since the company is not a closed system in itself and that its ultimate goal is to sell an output (product or service), business functions are constantly influenced by external factors that cannot govern (Brown, 2011)

Influence of Internal and External Factors of Management

The role of globalization in influencing organizational function is therefore of significant importance, now the planning teams are required to do real brain storming in planning for further business operations and to meet the demands of the customers. Now the organizations have to have systems that are aligned with the technological changes coming in day by day. The impact of technological changes has brought the innovations in a way organizations work. Therefore, the higher level management is required to plan things accordingly which can serve as a path of success for their organization and their planning about certain things do not go in vain. While planning for organizational benefits and its success, ethics plays very important role (Gomez & Balkin, 2008). Organization need to think that whatever they are planning for should be morally, socially and legally ethical and does not harm anybody. While planning for product, services ...
Related Ads