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Environmental elements affecting the field of Business Administration

Categories: BusinessEnvironment

Administration is the universal process of efficiently organizing people and resources towards common goals and objectives. Moving to the 21st century, we face more change and the pace of this change is quickening for both governments and enterprises alike. Particularly, we are challenged to transform organization, traditional production and consumption patterns and our personal lifestyles to reflect that we are part of a global community and ecology vital to our welfare and survival.

We must become change agents in the context of impending changes organizations need to make in order to deal with the changes in social norms of society.

However, the core meaning is more about developing Change Ready Organizations, where everyone is a change agent. To better effect change, we need to look at why we need to change, and face more change than less. It should be noted further that any change desired by any firm should be measurable, attainable and realistic.

Environmental Elements The principal driver for any organization is to remain viable and relevant to its customers, thus maintaining existence.

If an organization is to survive, it must respond to its environmental changes effected by a number of factors; Globalization, Rapid influx of technology, shift from minerals and manufacturing into service and knowledge industries and shift in managerial focus.

Since globalization lies at the centre of contemporary culture and cultural practices as argued by many pro-globalization activists, this business globalization has ultimately resulted to various organizations to function and invest in a global platform in order to increase there productivity.

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Therefore an analysis of current business environment is very decisive to organizations and particularly to chief strategists of such firms in order to decide on the nature and type of strategies to be formulated that will support in coping with the ever increasing competition also brought about as a result of globalization.

Therefore any firm should come up with competitive strategies for instance; competitive generic strategies that will boost there market performance by giving such firms competitive edge over rival firms. Globalization and Trade Trade is one of the main drivers of globalization. Globalization touches the lives of people everywhere, and while bringing change, often this change benefit those in need the most.

In the present day, record changes in business settings that include enhancement of communication systems, effective transport structures, and the utilization of computer knowledge has played a significant role towards globalization which comes with new energy in terms of business strategies in business context. Further research indicates that as global impermanent resources reorganize immense business, it ultimately sweeps away guiding principles and thus in the process undermining the practice of deep rooted confined and national politics and markets (Paul, William, Louis, and Simon, 1998).

Rapid influx of technology Today’s organization has undoubtedly been reshaped by technology influx. Companies with high technology needs from Internet start-up companies and telecommunication firms have forced managers and owners to adapt to a new breed of customers with own demands, who not only expect but demand a high level of service, amenities and a more hands-on approach to their requirements.

In essence the most vivid reality and existence of globalization can only be undergone when new innovations and technologies are considered; for instance, because of contemporary superior technologies most businesses has increased there general level of imports and exports thus reaching a wider market as well as meeting the ever changing needs of there customers in business environment. Shift from minerals and manufacturing to service and knowledge Organizations need to differentiate themselves through knowledge and relationships with partners and customers.

Research indicates that improved productivity and performance of knowledge workers increases competitive advantage. Knowledge based economy for instance has now gained deeper roots because of globalization; Businesses have now shifted focus to service and knowledge business undertakings, the main reason being the availability of variety of superior technologies brought about in this era of global globe (Blank, 1993). Shift in managerial focus Managerial focus has shifted from individual effort to team based projects. Another managerial response is to focus on knowledge itself with emphasis on capturing the know-how possessed by people.

The success and survival of many companies is based on systematic creation of knowledge. Thus for knowledge to add value, someone must apply it to something, it must be acted upon. Organizations do not do anything, people do and organizations do not learn, but people do. Further research indicates that modern businesses not only practice the traditional functions management of planning, organizing, leading and directing but indeed they have also implemented more modern sound approaches like that of management by objectives (MBO) in order to attain there business objectives.

Research perspectives The idea of globalization poses multiple challenges for knowledge. Theoretical and methodological mix is encouraged. Methodological innovation, particularly if related to knowledge systems will be considered if this is situated within recognized and rigorous theoretically informed perspectives. The impact of globalization has been complex and sometimes contradictory on the way we see ourselves in relation to others (Hill, 2005).

Some people have benefited from new opportunities provided by it and embraced aspects of the cultural patterns with which it is most closely associated. Others have reinforced attachments to old identities or inventing new ones in response to the economic and cultural threats. As a matter of considerable debate, discerning and analyzing overall patterns is significant in underlining and complicating multiple links, including one between social identity and political mobilization.

As the primary means of political organization, globalization has recast the nation state. Its sway over the economy has been substantially eroded while its role in managing conflict both internally and internationally remains robust. New challenges to social and political organizations have arisen given this. For these to be managed and understood in contemporary times offers a rich seam of enquiry. The key politico-economic process of globalization focuses on the lives of individuals, communities and even whole societies are affected by the aspect of globalization.

The space to engage one of the cores, self-evident features of globalization-technology and innovation is also open up (Blank, 1993). Theoretical and conceptual views Globalization describes the ongoing global trend toward the free flow of trade and investment across borders and the resulting integration of the international economy. It raises productivity and living standards of people in countries that open themselves to the global marketplace by expanding economic freedom and competition.

For less developed countries, it offers access to foreign capital, global export markets and advanced technology, breaking the monopoly of inefficient and protected domestic producers. Poverty reduction, democratization and higher labor and environmental standards are further promoted by faster growth. Globalization makes it difficult for governments to abuse the freedom and property of their citizens by acting as a check on governmental power and as a result, greater individual freedom for their citizens (Hill, 2005).

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Environmental elements affecting the field of Business Administration. (2020, Jun 02). Retrieved from http://studymoose.com/environmental-elements-affecting-the-field-of-business-administration-new-essay

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