Uncertain factors have a substantially impact on the organizational day-to-day operations and executive management to making business decisions. Hence, the complex features of competitive environmental context require business owners should exert their abilities to maintain the appropriate consistency between environment and organization.The core perception has been a central notion in many investigated initiatives that emphasis on the characteristics of integration between a firm and its surroundings. (Smircich & Stubbard, 1985) Resulted by business circumstance is dynamism and complexity, the manners of uncertainty, therefore, will continue to be the main task of management involving the development of mechanisms to reduce, absorb, counter, or avoid it completely (Jauch & Kraft, 1986).
The external environmental context has a significant effect on decision making and innovation. A faultfinding side of environmental features contributed to innovation is environmental uncertainty. (Weber &Virginia, 2010) Environmental uncertainty are cut by environmental complexity and environmental variability. circumstance complex allude to the multifariousness and interdependence of environmental factors that corporation have to contended.
For business organization, a decision making and enterprise’s annual performance are frequently followed by external business factors and internal driving forces. The well-known general external surroundings of an entity dividend by dimensions as political impacts, economic contexts, social-culture conditions, technological factors, and geographic reasons etc. (Chenhall & Morris, 1986) On the other side, the internal forces consists of the organizational culture, board of executive management, human resources, physical environment, and spirituality. (Achrol & Stern, 1988) Another aspect to consider approaches to enlarge and prosper the organization that requires manager’s abilities about forecasting, recognizing and settling the deviated situations in both internal and external circumstance are able to flexible applied in daily management. Accordingly, managers must have better comprehensions and highly passions to engage in a process for evaluating and reacting challenges.
This essay concludes some unrepresentative factors which are higher possible to considerably affect organizational distributed arrangements and management decisions. Also, the suggestions for lessening negative influences towards to factors of uncertainty are provided for sake of providing efficiency conducting to organizations.
2. External Factors Influence Managers and Organizations
As for external environment, Dess and Beard (1984) have stated the dynamism, heterogeneity, and hostility were three characteristics in it. Another theory considered environmental uncertainty to be the result of changes in market composition and in technology. (Burns & Stalker, 1961) Actually, the external factors of business environment are comprised by uncontrollable forces surroundings of the organization. (Huber et al., 2004) These forces destroy or encourage business in an unintended direction because individual lacks of abilities control against them, but corporation can react and suit to these elements and transformed original threaten towards controllable capabilities so make the organization favor in the external environment.
External factors refers to the amounts of substitute or competitive product of marketers in one industry, their weakness or strength, product or sale, research and development are all feasible to cause changes. As a business manager might not have direct influence on them, but it’s important that manager supervising for market activities, and then process appropriate strategies through organization controllable variables.
Factor of governmental policies is foreseeable approaches to adjust market activities. Through legislation or other compulsory laws to affect business operations. Organization may be restriction by the relevant policy to do their original business, otherwise, governor income and social welfare adjusted by economic policy also brings unforeseen influences.
For the physical environment, it is formed by the available or lacks of nature resources that can fluctuate the production output or input. The cost of business, production cycle, and export quantities for goods are closely followed whether original materials are enough. Managers, obviously, are ought to star at their production materials and price fluctuation to avoid higher cost or shortage for resources.
Additional, social and cultural forces are usually decided by consumers preference or their consumption habit. It is relevant with the organizational structure, leadership styles, personal dynamics. Many of social reasons accompany a long way to decide people’s purchasing favorably. After begin a investment or create a new market, it requires managers that make fully understand about their aimed population and market context for seizing their favorites styles, acceptable price ranges and special resident habit.
The demographic forces is highly likely about people. For instance, the people in different social position selects how much is acceptable price is various. The elements of age, sex, marital status, occupation, family size etc should be considered wholly before organizations enter a market. Managers should have a sensitive recognition to rapidly position their production position. Though, demography is uncontrollable as people are less ability to control human’s sex, age, marital status in external environment, however, it is not possible to investigate the interventionism market.
Finally, technological changes is full of opportunities and challenges due to it post higher possible to attract new consumers from new kinds of products. For instance, a broken news reported by Keizer (2014), iPhone 6 has launched in a few days that iPhone 6 sets sales record with four millions at the first day. But in last decade, who can imagine today’s function of mobile phone? It seems to illustrate that the new technology have changed products towards a more proficient, intellectual and automated trending. Managers cannot stop the advancement of technology, but make right direction for research and development that make organization not only frighten to new challenge but also a boosting opportunities.
3. Internal Forces Influence Managers and Organizations
The internal forces closely linked with human resource in business activities, and the manners in allocating work are mostly based on corporate missions of work processes.(Isaac, n.d.) Moreover, Drucker (1954) indicated that the task environment dividend to specific dimensions that consisted of competitors, consumers, suppliers, regulators, and strategic partners.
One element has an imperceptible change that lead a continued series alters in an organizations. The employments factors decide how much benefits they can bring for the organizations, also, it is a virtual factor to make sure whether the enterprise’s have abilities to sustainable development. Furthermore, training progress within a company is also one point to arise achievement in the future. An rational process for training staffs are highly likely to achieve a great motivated and loyalty management team. Senior managers are derived from the initial training program. For example, Siemens group selects genius graduated students who has willing to participated into its associate management program for bolstering the future corporation management team. (Siemens, 2014)
However, the reality situation is usual lower than expectation by limited elements, managers need to be directed contingency their staffs with organization’s culture for making their has great apparent cohesion. From other side, for finding ways to enhance productivity that opulent allowance and wages make workers have positive motion to continue contributing in their position. The management team may have different award policies and leadership styles.
Culture within the organization, crucial factors in determining the position of a easily to be ignored by people, usually plays a significant role in firm. Positive attitude for staffs enhance their initiative and great creativity, stimulate higher potential ability to staffs and make themselves full of confidence. (Kreitner, 2001) Whereas, lower atmosphere in an organization make people are unwilling to work favorably. It usually make business plan are restarted by lower efficiency or more errors. For managers, the ethical and moral testing for elopements is remarkable important for their work. It decided whether the secret assignments won’t be leakage by competitors. Moreover, an ethical issues, sometimes even decide the corporation’s life and salvation.
The structure is not the predominant issue but may have further effect for organization. The simplest is non-profit agency usually perform lower motivation in comparison with profit business. As for management, if a company’s structure are too many levels of decision making that can be delay the speed of task implementation or information is slowly transformed in the hierarchy.
The availability of fixed asset such as machine, devices or building is another elements that can great impact on organizations. If the fixed asset is lack of maintaining the daily operation or less than staff’s expectation then staffs may be hindered their duties. Otherwise, the managers evaluate investment through capital strengthen specifically the financial strength factor. Despite good other internal factors may be, it is troublesome for a firm that is poverty for cash flow to conduct business plan within organization’s mission. Assumed organization struggles with worse financial shortage that bring awareness of frightened for employment and manager as budgets need to be excessively tight.
4. The Approaches for Eliminating Obstruction
While the surroundings changed to a unintended context it requires corporation square away acquiring resources, implementing them decently, proceeding rational strategies, and maintaining firm’s sustainable development in order to decline the negative impact on factors of uncertainty.
For the aspect of perceived complexity factors, it needs the managers have full sight on external environment to make correctly decisions. The essential measures claimed controller to understand the newly trends and incidents in external circumstance. And then forecast the future possible happened tendency and things. To know sufficient information, hence, is a good meaning to measure the current situation on external environment. Eventually, summarizing the effects and causes for appearing of an event in our external environment. (Choon-Ling, 2004) A prominent extent of decentralization and specialization have to scan larger range of environmental factors like emerging trends, threats, opportunities and strengths.
The environmental variability factors demand organizations in animated business context to achieve the abilities to uninterpreted prospering the rapidly changing environment. To know there is always happening unintended situation may influence organization’s external environment.
Actually, both environmental complexity and variability compose the cornerstone of structure for organizational long-term framework. They are postulated changing to resource assignation, enumeration, and antecedence during task implementation. Furthermore, these varies also enlarge requirements for more tangible controlling, which allows the business become more efficiency perceive and react to unforeseen issues or chances. Finally, considerable amounts of information and data processing are required decision maker has deeply comprehension during the phase of strategies conduction.
One opinion of how well an organization make its business activities confronted with environmental changing that is a measurement of evaluating an organization’s effectiveness and efficiency. Thus this essay withdraw viewpoints from sociological features and psychological characteristics in management strategic theories in order to illustrate how business are intervened by randomly various factors. Through reviewing previous literature of relevant studies, the apparent purpose of this essay is to facilitate organizational management would have been better comprehended. From my perspective, this essay display for viewer an easier version to realize why managers structured problems or mentioned tentative viewpoints in such a way. In addition, the objective suggestions and directions are provided for sake of intriguing awareness to future research.
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