External Environment is everything outside an organization that might affect it.

TASK ENVIRONMENT

• Task Environment is specific organizations or groups that affect the organization.
• Forces of the task environment of a business are given below:
  • Customers
  • Suppliers
  • Competitors
  • Producers of substitutes
  • Potential businessmen

GENERAL/MACRO ENVIRONMENT

• Macro / General environment is the set of broad dimensions and forces in an organizations’s
  surroundings that influence its overall activities.
• Forces in the macro environment which influence businesses can be listed as below:
  • Political and legal environment
  • Economic environment
  • Social and cultural environment
  • Technological environment
  • Demographic environment
  • Natural environment
  • Global environment

 

• Comparing the actual performance with planned performance, identifying the
  variances if any and taking necessary actions to correct them can be said as controlling.

Steps Of Controlling

• Establishment of standards
• Measure the performance
• Recognize deviations
• Take corrective actions

Types Of Control

• Feedforward control
• Concurrent control
• Feedback control

Importance Of  Controlling

• To ensure the quality of the product
• To minimize the cost
• To minimize the faults or bring them down to the zero level
• To change according to the environmental changes
• To evaluate the progress and correct the faults
• To confirm that the performance of the organization is up to the expected
  level

INTERNAL ENVIRONMENT

• Internal environment is the forces and conditions within an organization.
• Internal environmental forces of the business are given below.
  • Owners
  • Managers
  • Employees
  • Organizational culture
  • Organizational structure
  • Resources

• The environment which influence business activities.

Advantages of studying the business environment

• To identify the strengths
• To identify the weaknesses
• To identify the opportunities
• To identify the threats

The business environment can be classified as below:

Classification of the business environment can be presented in a diagram as below:

 

• Process of leading consists of three major functions:
  • Leadership
  • Motivation
  • Communication

• Any type of professional relations between the two parties of employees and employers are known as industrial relations.

Benefits of good labour relations 

• Enhancing the employee productivity of the institute
• Due to lack of industrial disputes the affairs of the firm flow smoothly
• Minimizing the wastage of resources
• Decreasing the absenteeism of employees
• Creating a motivated team of workers
• Decreasing the labour turnover

Consequences of bad labour relations 

• Weakens the business process due to strikes, and labour crisis
• Declining the employee productivity
• Diminishing the morale of the employees
• Wasting of resources
• Dropping the efficiency and effectiveness of the entire firm

Industrial Disputes 

• Job-related disputes arisen between employers and employees are known as industrial disputes.

 

• Organizing is the process of arranging and allocating work, authority and resources
  among an organizations members so as to achieve the organizations goals.

Importance Of Organizing 

• Necessity of formal organizing in order to achieve the objectives of an institute.
• To implement the plans successfully.
• To get the maximum use of the resources.
• To co-ordinate the tasks among the individuals, groups and departments.

Steps Of Organizing

• Recognizing of the tasks
• Division of work
• Departmentalization
• Delegation of authority and responsibility
• Determining the standards of work
• Allocation of resources
• Co-ordination

Bases Of Departmentalization

• Functional basis
• Product basis
• Consumer basis
• Geographical basis
• Mixed basis

Power Sources

• Legitimate power (Authority)
• Expert power
• Charismatic power
• Reward power
• Coercive power (power to punish)
• Personality power
• Information power
• Dominance

Various Ways Of Organization Chart

• Circular organizational chart
• Vertical organizational chart
• Horizontal organizational chart

Following elements are depicted through an organizational structure:

• Centralization or decentralization
• Departmentalization
• Unity of command
• Span of control
• Job specialization
• Rules & regulations and procedures
• Co-ordination
• Hierarchy

 

 

 

• Planning is a process of establishing goals of an organization and deciding
  the ways and means to be followed to achieve those goals.

Main activities of the  process of planning

• Deciding the goals and objectives.
• Deciding appropriate ways and means to achieve the goals and objectives.
• Presentation of those methods and strategies in writing.

Steps Of Planning

• Analysis of environment
• Identification of the strengths, weaknesses, opportunities and threats
• Establishment of the Vision, Mission, Goals and Objectives
• Identification of strategies
• Implementation of the plans
• Measuring the success and controlling

Principles Of Planning 

• Based on goals and objectives
• Practicability
• Flexibility
• Easy to understand
• Specific time duration
• Prepared prior to other managerial functions in an integrated manner

Importance Of Planning

• To face the uncertainty and dynamic environments successfully
• To get the maximum use of the scarce resources
• Planning facilitates controlling. Plans are supportive to determine whether the
  organization has fulfilled its objectives, and if not what should be done to rectify
  them
• Planning gives managers an opportunity to think about the future of the organization
• Planning is essential for other functions of management
• Planning is required for the continuity and growth of the organization

Problems and Limitations Of  Planning

• Application of out dated and incorrect information
• Planning based on the previous trends and data available at present
• Planning beyond the ability and capacity
• Insufficient interest and dedication
• Not receiving the co-operation of the employees at each level in the organization
• Plans not being integrated to the entire management system
• Believing that the plan will work as expected after being implemented

• A decision means the selection of the most appropriate alternative from among
  many alternatives.
• Accordingly, decision making is the process of identifying an alternative course of
  action to solve a specific problem and selecting the most suitable alternative.

Steps Of Decision Making

• Identifying the problem
• Developing alternative solutions
• Evaluating alternatives
• Selecting the best alternative
• Implementing

• Managers can be categorized into 3 levels based on authority as follows:
  • Top managers
  • Middle managers
  • First – line managers
• Top managers are the managers who are responsible for the overall management
  of the organization, establishment of goals, strategies operating policies and supervising
  the activities of middle managers
• Middle managers are the managers who direct and control the activities of first line
  managers and implement the policies, strategies and plans developed by the top
  managers
• First-line managers are the managers who supervise and control the activities of non
  managerial employees.