The paper "External Organizational Environment" is a wonderful example of a report on management. In the contemporary organizational environment, a lot of dynamics apply, both internally and externally. Organizational performance is highly dependent on the interaction between the internal and external environments. Through appropriate management practices, a balance between the two aspects is significant in ensuring effective management. The internal environment relates to aspects within the organization itself and how they are coordinated towards achieving overall success. No business can operate without the external environment too. The relationship with the outside world is crucial and forms a fundamental part of organizational objectives and strategies.
Management should, therefore, engage in management practices that recognize and appreciate the roles of the two environments in ensuring environmental growth and sustainability. In modern organizational settings, the dynamics are flexible compared to the past. In this view, organizations are always alert and devising ways to respond to the ever-changing environment. The changing environment is mostly driven by significant innovations in technology and communication. The issue of globalization and liberalization of markets and free-market operations have accelerated the changes (Daft, 2009).
As a result, businesses are every day becoming more creative and innovative to keep competitors at bay and meet the ever-rising standards in requirements from all stakeholders. Managers can control internal organizational environments with ease. This is highly dependent on organizational culture and the style of leadership applied in the organization. Leadership plays a key role in shaping the kind of management an organization follows. This is management gets its directions and roles straight from leaders in the organization. Specific leaders have different leadership styles and hence organizations have different management styles.
The extent to which management can control the internal organizational environment is significantly lower than that of an external environment. This is because an organization has very little control over the external environment. Some of these factors that an organization may find it hard to control include economic, political, environmental, governmental, and human factors. Organizations can only react to the effects of external factors (Voiculet, Belu, Elena, & Rizea, 2010). In doing so, somber approaches are relevant in ensuring that the external environment only affects the organization positively and, do not stall objectivity in the organizations.
Due to the unpredictability of external organizational environments, rigid approaches to management and leadership are always bound to fail. This is the reason why organizations are finding it critical in altering their cultures and ways of addressing issues in order to accommodate the new changes. In this essay, the way organizations respond to external environment changes will be discussed in depth. The reasons why organizations respond to external organizational environments will also be evaluated. External organizational environment As mentioned earlier, external factors in an organization are beyond the control of the organization.
The only appropriate response is acting in manners that will take advantage of external factors to grow the organization. For instance, innovators come up with new technological advancements every day. It is up to management to decide whether it is best to replace the existing technology or maintain the existing ones. This will be based on the prospects of the new technology among other factors. Effective management should have the ability t recognize such niches in the market and take advantage of them to edge out competition from rivals.
As organizations grow, average operating costs should reduce as much as possible. Sometimes it is necessary to incur one-off expenses to safeguard future costs. New technology may be more effective than the existing one. However, it may call for huge financial investments to enable implementations. Managers always have to take risks as they may not know when the adopted technology may be replaced by other superior ones. Companies respond to technological changes by acquiring better technology that will aid them to meet consumer demands better.
This way, competitiveness is enhanced and growth is sustained having a technological advantage over rivals may lead to domination in the industry. It may also discourage new entrants in the market. For instance, the Microsoft Corporation has extended its multi-billion empire throughout the world due to its superior and unique technological advantage that many rivals cannot keep up with. Studies in markets and organizations have shown that markets move where technology moves (Laegaard, 2006).
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