Introduction
Internal forces refer to all the situations affecting a business organization from within like innovation and diversity. These situations are usually under the control of the company. External forces on the other hand are the driving factors that are out of the company’s control like competition, political interferences and technology. The four main functions of management necessary for the proper running of any business organization include: planning, organizing, controlling and leading.
Leading Function of Management
Leading function of management involves overseeing the behavior and well-being of the employees with an aim of attaining the set company goals and objectives. Since employees are the driving force towards achieving success in business, they need to be motivated with rewards and incentives so as to improve their performance. The internal and external factors affecting this business management function include:
Technology– employees can embrace new technologies that boost efficiency in production and marketing of company’s products and services. For example using the website and other social sites to help market the company’s products and services.
Innovation-the company may motivate employees to be more innovative and creative by rewarding those who exhibit exemplary work and who come up with new ideas that improve performance of the company.
Diversity among the employees may result in a low output due to the differences in culture and lifestyle that affects team work and cohesion among employees. For example having employees from overseas may suffer from culture shock affecting their productivity.
Ethics– are the positive attributes and conduct that employees may embrace in order to build a good relationship with their customers and fellow workers. The company may reward those employees who exemplify good ethics so as to motivate them to continue with the trend.
Controlling Function of Management
The controlling function of management entails setting standards and goals by which employees must work to attain and evaluating the performance of individual workers or departments. The external and external factors that play a significant role in the controlling function include:
Globalization– where the business expands its global network to boost its survival and growth in the global market for instance, importing raw materials from overseas at low prices hence cutting down on the cost of manufacturing and hence maximizing on profits.
Technology– this involves coping up with the latest trends and patterns in the market. The company must embrace the latest technologies if they are to remain relevant in the business field. For example purchasing high quality machineries with the latest technologies to boost efficiency and provide quality services that will help the company attain its goals.
Innovation– this involves coming up with new ideas and technologies that are unique in the market to help the company stand-out and outcompete its competitors in the market. This can be achieved by investing in research work and encouraging new ideas or improving on the current technology to optimize efficiency.
Diversity can be positively utilized to increase company’s output and efficiency by allocating employees the tasks that they like doing most and boosting employee interrelationship. Diversity may also result in inefficiency due to cultural and background differences among the employees.
Ethics-employees are also encouraged to embrace appropriate business ethics so as to deliver as expected in the course of achieving the company’s objectives.
Conclusion
The two forces affecting the day to day running of any business organization in a positive or negative way are referred to as either internal or external forces. The company should be very responsive to changes that may occur in the market and be ready to combat it appropriately to ensure success in the business (Hatten, 2011).
Reference
Hatten, S. (2011). Small Business Management: Entrepreneurship and Beyond. New-York: Sterling Publishing.