Internal and External Factors Affecting the Four Functions of Management In relation to the four functions of management, there are several internal and external factors that affect an organization’s success. Using DaVita, Inc. as an example, we can look at each internal factor that would affect the function of management and the external factors. Internal factors would include ethics, innovation and diversity while external factors would include globalization and technology. When we look at why DaVita would consider globalization, we would need to consider the external factors that created this need.
In general, when a company looks outside of the country for support it is watching what the competitors are doing. DaVita has found an area where they can run their clinics much more economical. The cost for labor is less which is their highest cost of operation. They also need to consider they have tapped most of the resources available in the United States for growth. They need new areas to continue to grow and dialysis is a global disease.
They saw an opportunity with providing high quality dialysis in the less fortunate areas in the world that do not provide that currently (Travis, 2012). DaVita sat down and began the plan of expanding for this purpose. After they specified the goal and thought of the appropriate actions to get there, the next step was to organize. They needed to find a way for everyone to work together to make this a successful transition.
The executives began the campaign to lead the group to their vision by helping everyone see what they saw. Only if everyone was on the same page, would this be successful. The support of the public is necessary in order to get through any scrutiny this may cause. After they were able to implement their idea, it was time to control the plan and determine if it was successful or not. The clinical model that DaVita provides to these other countries make this more affordable to the general population and is proven to be able to serve from the current 6% of kidney failure patients to 20-30% (Peerzada, 2012). This would be a significant success for DaVita to accomplish their plan of providing this service to areas that cannot provide this service. In reference to diversity, DaVita is a company that operates in eleven countries in addition to the United States. They deal with diversity on a daily basis. As individuals in the company start to plan their next goal, evaluating who uses their service is key. The ideas need to be innovative but also needed by the customer. The target audience is people with kidney failure, but from any nationality. This is key when deciding how customers will pay for the service as well as how to market to them. When management is organizing their plans they must consider where they will get the resources to accomplish this. Moving forward will be challenging when dealing with such a diverse group.
Language barriers, culture, cultural norms and resource availability to name a few of the things that need to be considered. When DaVita moves forward with the idea, having effective diverse leaders will prove most valuable. Leaders must posess the ability to communicate with a variety of people. Placing people in various locations is key, and having employees trained in diversity, cultural norms and each countries policy’s. When doing business around the globe, leaders need the ability to motivate someone from China as well as India without violating their beliefs or values. Also leaders need to find a common ground with their staff as well as lead the staff to working as a team. Monitoring such a diverse group will be challenging but also rewarding. The goals set at the beginning of the project will need to be realistic as well as based on each countries health care options. As change needs to happen, they must recognize this and have the right person in place to make those changes will be key. Having a diverse group can bring various insight to a team. An organization must be able to embrace this insight and experience to allow the company to prosper. Using technology effectively can improve and at the same time be inconvenient in the work place. Stress level can rise in employees when the innovation of technology is introduced.
Dedicated employees must learn new abilities. They are usually forced to gain skills involving their judgment, when and how to best use technology. Some can see technology as a positive improvement, others can over due the use and become workaholics since there is flexibility that applies and they can even work from home. Advanced and efficient service is a cause of stress in some employees. The internet has become an impact not just for business but also by individuals. DaVita has made many dedicated changes in their technology some affecting their job performance. Some of their equipment has been changed for better usage and process improvement. As an organization, they focus on the studies and protocol that provide resource of disease and cancer indicators. Chief Executive Officer, Jim Joyce, was selective when the pioneer development of the use of therapeutic filtration devices addressed infectious diseases, cancer and other life-threating conditions. They presented research once they were cleared by the FDA of their device. This company was presented the opportunity to change their equipment for better usage and productivity. Referring to innovation, Davita finds consistent dedication to differentiate itself from other kidney companies. With hard work from each employee they use innovative skills and teamwork.
The interesting message that I learned from reading DaVita’s website is the word DaVita is italian for “giving life “. It is a company that specifically treats for kidney health. Regardless of the size, all organizations use and develop ways to manage with tact, strategy and decision-making. They use the four functions of management such as planning, organizing, directing, and controlling. Of the many health care companies that are part of the fortune 500, DaVita is one healthcare provider that brings variety. It provides variety of health care service to patient populations through the United States and abroad. Striving to improve patient’s quality of life and innovative clinical care they were able to offer integrity in treatment plans. This company serves 73 outpatient dialysis centers located in 10 countries outside the United States. They actually focus on programs that are dedicated to bring positive changing communities around the world. DaVita is involved in leadership programs that help develop innovation as a part of their social responsibilities.
With teams and strong leaders, the company works on basic techniques to reach to those all around the world. DaVita has employees all around the nation. An example of ethics that the company has implemented is to create their own management concept. Davita educates patients with information of their core values. They take privacy serious and comply with policy that protects patient equality. Goals, objectives and tactics are part of their focus on engaging service excellence. This helps eliminate not meeting expectations that arise by their doctor, team members and patients. They collaborate with integrity and believe in what they say. As I gather from their website on their mission and values section they use phrases like “one for all, and all for one!”. Together they share purpose and common goals. There is always room for improvement with commitment. They set aside goals that influence their team. When planning for requirement and values they come together as one team working towards one goal. In conclusion, organizations use function of management to successfully accomplish the goals and objectives. Working in different areas, the four functions are used in globalization, innovation, diversity, technology and the ethics of a company. DaVita dialysis focuses on the health of the kidney and find a method to comply with these functions. They have goals that encourage all employees to determine the best functions for positive success.
Bateman, T. S., & Snell, S. A. (2011). Management: Leading and Collaborating in a Competitive World (9th ed.). Phoenix, AZ: Author. DaVita, Inc. (2014). www.Davita.com. Retrieved from http://www.davita.com Peerzada, A. (2012, January 12). US-based DaVita picks up stake in NephroLife Care for India entry. Retrieved from http://articles.economictimes.indiatimes.com/2012-01-12/news/30620033_1_davita-dialysis-renal-failure Travis, T. (2012, October 2). Time To Follow Berkshire Into DaVita. Retrieved from http://seekingalpha.com/articla/901091-time-to-follow-berkshire-into-davita
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Internal and External Factors affect the four functions of management. (2016, Mar 05). Retrieved from https://studymoose.com/internal-and-external-factors-affect-the-four-functions-of-management-essay