The four functions of management include planning, organizing, leading, and controlling.
These functions can all be affected by various internal and/or external factors in a business environment. External forces that may affect the management functions of an organization include economical, sociological, political, and technological.
Sociological (external) factors include work ethics, personal values, as well as cultures. This factor has an influence on how management accomplishes individual tasks. Each country/region has its own unique values, and if a company goes international, these values, work ethics, as well as beliefs will affect the company's plans. External values may affect how a company markets itself, as well as how to motivate its employees.
Technological (external) factors may have the biggest affect on how a business operates as well as how it functions in the future. Oftentimes, technological changes happen very quickly and have such an impact on a company that management must be in position to make decisions in order to place the company in a position that allows the organization to adapt to the technological changes.
Technology may determine how management organizes it employees for a given task; for example, in the automobile industry, less employees are needed because robots are able to do the same functions.
Management is responsible for the organization of the company, which includes organizing people/resources. Knowing how many employees are needed for particular shifts is critical for the success of a company, and necessary resources are needed to complete a job; technology affects the available resources.
Political and economical (external) factors include suppliers/vendors, outside competition, as well as customers. Management must monitor the effects of how a competing company may or may not be affecting business; more importantly, understand the changes needed to be made in order to decrease the effects of the competition. In addition, if certain vendors charge more and their product is not of a high enough standard, management must make the proper decisions.
Internal factors include the organizational/company resources available, and used, in order to accomplish goals. Internal factors may include financial, physical, as well as human resources. The human factor, employees, has an affect on how a company does its scheduling (organizing). If employees are not performing to an expected level of standards, then management must make the proper changes (controlling) in order to bring employees up to the expected level of productivity, by directing and motivating (leading) employees.
