Why is it Important for a Manager to Understand Organizations Environment

Why is it Important for a Manager to Understand Organizations Environment?

 

Managers are expected to have the best capabilities of understanding and managing the organizational behavior as well as the business environment.  It is very crucial for the management to have keen knowledge on the business, cultural and the environmental issues of the entire organization such as business structure, competition, political and economic environments, and finance matters.  In the same way, the managers are also expected to have the ability to deal effectively with the employees with the application of cultural guidelines, norms and values of the company. And, of course, the manager is more important to know how to deal successfully with change, innovation and technology revolution.   An effective international manager has the ability to reopen the business in a new setting. He or she should assess the entire structure of the business and its operational flow. Having a new company location is one of the challenges that the manager deals with, he must see to it that the whole organization is able to comply with overall policies, guidelines and practices towards the attainment of a common goal.  Skilled and most valuable key employees should be given tasks that will surely help to the immediate settlement of the new work force and the organization.  In addition to that, technological modification could be another one factor that the manager should be aware of fully.  A global based structure business may have started as “export division” that is under the Operations or Marketing department, and eventually, it might become an “International Division”, so , this kind of changes and new environment must be  always expected and have prepared strategic plans  and implementations  for it. What is more important is the   manager’s knowledge of the globalization costs such as international freight, insurance, manufacturing charges, import fees, broker’s fees and international travel.

(http://www.referenceforbusiness.com/management/Gr-Int/International-Management.html)

Furthermore, competition is always the mainstream in all industries. And, it is therefore, a must that a manager has the deeper knowledge and understanding on the nature of competition that may differ by its local place and type of industry. Understanding the type of environment in which the company will participate in its host country must see to it that appropriate business ethics and practices are properly applied.  Moreover, having the ability to understand and adapt business international laws is very essential in dealing with foreign clients and co-investors.  Learning how “fair competition” is viewed in foreign business environments better prepares a manager to protect his or her own business.  Being prepared and equipped with all vital information and knowledge about how to protect his or her own organization from other competitors   must be a primary goal and objective of any manager in the organization. Besides, there are many environmental factors that managers  must be taken into serious consideration;  such as free –market against centrally integrated market,  GDP as well as the GNP , so as to the per capita income- all these elements determine the consumer buying power in the business. Equally important is the responsibility of the managers to see to it that the employment and labor forces are sufficient in order to meet the clients’ demands, as well as to operate the business effectively. When managing international operation, the managers must be able to fill positions from a pool of labor with the right qualifications, education and skills in order to keep the business growing. Hiring options from the parent company and choosing employees from the host country, or local subsidiary can help also in times of rapid growth and strong demands in the organization.

(http://www.referenceforbusiness.com/management/Gr-Int/International-Management.html)

Subsequently, proper planning is very vital in facing tremendous change in any organization; many corporations have their own qualified executives, managers and other company leaders who work hand in hand in order to promote effective management and operation from the top going to the bottom line.  Motivation, leadership, centralized communication system; among others are most important factors to adapt effectively whatever changes occur in the organization and the entire business environment, as well as in the business community at large. Managers must be adaptable and have a high level of tolerance for change and uncertainty.  Thorough understanding in planning, organizing and implementing of business ideas and strategies are most important elements to attain company’s vision and objectives.  All areas of the business, as well as their financial and performance  standing  must be evaluated  seriously like accounting, auditing,  human resources, business planning, company’s policies and procedures, computer information systems and of course the organizational culture, mission, vision and goals.  In adapting organizational change must be associated with technical competence, ability to communicate effectively, as well as there must be willingness to learn, and the managers must be positive thinker.

  (http://www.adb.org/Documents/Information/Knowledge-Solutions/fast-effective-change-management.pdf)

References:

(http://www.referenceforbusiness.com/management/Gr-Int/International-Management.html)

(http://www.adb.org/Documents/Information/Knowledge-Solutions/fast-effective-change-management.pdf)

 

 

Credit:ivythesis.typepad.com