management and socity 2

7/31/2019 Management and Socity 2

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Management and Society


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First: The External Environment.

All managers, whether they operate in a business, a

government agency, a church, a charitable foundation, or

a university, must, in varying degrees, take into account

the elements and forces of their external environment.


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While they may be able to do alittle or nothing to change

these forces, they have no alternatives but to respond to

them. They must identify, evaluate, and react to the forces

outside the enterprise that may affect its operations.


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)A The Economic Environment

It is sometimes thought that the economic environment is of

concern only to businesses whose socially approved

mission is the production and distribution of goods and

services that people want and can pay for. But it is also of

the greatest importance to other types of organized

enterprises.


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A government agency takes resources, usually from taxpayers,

and provides services desired by the public. A church takes

contribution from members and serves their religious and

social needs. A university takes resources inputs from

taxpayers, students, and contributors of various kinds andtransforms theses into educational and research services.


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Under this economic environment some input factors should be

considered because of their direct impact on business such

as: capital, Labor, Price Level, Government Fiscal, Tax

Polices, and Customers.


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Capital

Almost every kind of organization needs capital-machinery,

buildings, inventories of goods, office equipments, tools of

all kinds, and cash.


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Labor

Another important fact0r of the economic

environment is the availability, quality, and

the price of labor.


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In some societies, untrained common labor may be plentiful,

while highly trained labor may be in short supply. Engineers

may be scarce at one time and plentiful at another, as has

occurred in the ups and downs of the defense and space

operations of the united states.


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The price of labor also important economic factor for an

enterprise, although automation mitigates high labor cost.

The relatively high wages in the United State and many

European countries often create cost problems for

producers in these countries.


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Price Level

The input side of an enterprise is clearly

affected by price level changes. If prices go

up fairly rapidly, as happened in most partsof the world in the 1970s and early 1980s,

the turbulence created in the economic

environment on both the input and output

sides can be served.


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Government Fiscal and Tax

PoliciesAnother important input to the enterprise is the nature of

government fiscal and tax polices. Although these are,

strictly speaking, aspects of the political environment, their

economic impact on all enterprises is tremendous.


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Government control of the availability of credit through fiscal

policy has considerable impact not only on business but

also on most non business operations.


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Similarly, government tax policy affects every segment of our

society. The way taxes are levied is also important, not

only top business but to people generally.


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For example if taxes on business profits are too high, the

incentive to go into business or stay in it tends to drop,

and investors will look elsewhere to invest their capital.


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If taxes are levied on sales, prices will rise and people will

tend to buy less, if heavy taxes are placed on real state,

people may find it too expensive to own a house and may

go to cheaper and less comfortable.


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Customers

One of the most factors for the success of an enterprise is

customers. Without them, a business can not exist. But to

capture customers a business must try to find out what

people want and will buy.


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Non business enterprise have Customer

also. Universities and colleges have

students and alumni to satisfy. Similarly,

police, fire, and government healthdepartments must serve the public.


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)B The Technological Environment

One of the most pervasive factors in the

environment is technology, it is science

that provides knowledge, and it is

technology that uses it.


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The term technology refers to the sum total of the knowledge

we have of ways to do things. it includes inventions, it

includes techniques, and it includes the vast store of

organized knowledge about everything from aerodynamics

to zoology.


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But its main influence is on ways of doing

things, on how we design, produce,

distribute, and sell goods as well asservices.


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The Impact of Technology: Benefits and

Problems

The impact of technology is seen in new

products, new machines, new tools, new

materials, and new services.


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A few of the benefits of technology are greater productivity,

higher living standards, more leisure time, and a greater

variety of products.


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But the benefits of technology must be

weighed against the problems associated

with technological development, such as

traffic jams, polluted air and water energyshortages and the loss of privacy through

the application of computer technology.


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What is needed is a balanced approach that takes

advantage of technology and at the same time minimize

some of the undesirable side effects.


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)C The social Environment

The social environment is made up of the attitudes, desire,

expectations, degrees of intelligence and education,

beliefs, and customs of people in a given group or society.


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Managers of various enterprise have been

criticized for not being responsive to the

social attitudes, beliefs, and values of

particular individual, groups or societies.


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)D Political and Legal Environment

The political and legal environment of

manager is closely intertwined with the

social environment. Lows are ordinarily

passed as a result of social pressure andproblems. But what is bothersome is that

once passed laws over stay on the books

after the socially perceived need for themhas disappeared.


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The political and legal environment is primary

that complex of laws, regulations and

government agencies and the actions which

affects all kind of enterprises, often to varyingdegrees.


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The other rule of government is to constrain

and regulate business. Every manager is

encircled by a web of law, regulation, and

court decision-not only on the nationallevel but also on states and local level.


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Some are designed to protect workers,

consumers, and communities . Others are

designed to make contract enforceable and

to protect property rights. Many aredesigned to regulate the behavior of

managers and their subordinates and other

enterprise.


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There is relatively little that managers can do

any organization that is not in some way

concern with, and often specifically

controlled by, a law or regulation.


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Many of our laws and regulations are

necessary even though, many become

obsolete. But they do percent a complex

environment for all manager. Managers areexpected to know the legal restrictions and

requirements applicable their action.


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Thus, it is understandable that manager in all

kinds of organization, specially in business

and government, usually have a legal

expert close at hand as they make theirdecision.


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Second: The Social Responsibility

of Managers

The concept of social responsibility require

organization to consider the impact of their

action on society.


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In other words, managers respond to their

environment and become active participants

in the community to improve the quality of

life.


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Reaction or Pro-action

But to live within an environment and be

responsive to it does not mean that

managers should merely react in the face of

stress. Since no enterprise can be expectedto react very quickly to unforeseen

development through forecast.


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An alert company, for example, doesn't wait until its

product is obsolete and sale have fallen off before

coming out with a new improved product. A

government agency should not wait till itsregulations are obsolete and discredited before

looking for another way to achieve its objectives.

No enterprise should wait for problems to develop

before preparing to face them. Proaction is anessential part of the planning process.

management and socity 2

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