Organization exist as part of a wider environment Or part of society and as such their influence by the environment in which their operate. It is usual to consider the environment through form of analysis known as pest analysis which has 4 main categories ; political this looks at the government involvement through legislation that they provide outlining the legal frame work within which every business must exist and taxation policy which are dependent on company success and therefore their profit
ECONOMIC Factors affecting the financial functioning of the organization and value of money in the economy which will affect the ability to purchase as well as produce goods n services . It looks at the potential growth in a economy and how the value of money changes as well as trade
SOCIAL This refers to factors affecting the population and supply of labour by looking at the influences on individuals whether their are employees or customers . It will look at the taste n preferences of plp in society, culture of plp the profile of the workin population nn the number of plp in the job market which influences expectations and behaviour at work
TECHNOLOGICAL Factors affecting the processes of production such as changes in computer technology and communication and new manufacturing processes
MANAGEMENT FUNCTIONS Management involves creating and internal environment in a business which makes use of the inputs or factors of production to be transformed tp create outputs of goods and services .it is therefore the responsibility of management to create conditions that allows people to perform to their best ability to be efficient and effective.
MANAGEMENT is able to do this through their basic functions of planning organising directing amd controlling the organizations resources in order to achieve the goals of the company
Organisations considered to be employee oriented so they are likely to be more productive and as a result become more profitable. Similarly employees who are mistreated are more likely to reject the policies of the organization. Based on this o.b helps to analyze how and why employees behave in a particular way and the schools of management thought provide different theory used for the of management. Each school of thought IS based on different assumptions about people and the organization for which they work and understanding of the developments of management thinking will help to understand the process of management that offer good employee benefits and have proper working conditions.