4577876__Internal_and_External_Factors_

4577876__Internal_and_External_Factors_ - Internal and...

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Internal and External Factors 1 Running head: HOW DO INTERNAL AND EXTERNAL FACTORS IMPACT THE How Do Internal and External Factors impact the Four Functions of Management? [Author’s Name] [Institution’s Name]
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Internal and External Factors 2 How Do Internal and External Factors impact the Four Functions of Management? The efficient transaction of management functions is made more challenging because of several kinds of factors—diversity, technological developments, innovations, globalization, and ethical issues: Diversity Diversity barriers include several factors that make human interactions more difficult—differences in language, values, and behaviors. In many ways this last category is the most daunting because diversity differences are often hidden and are certainly the most difficult to quantify. Miles, time zones, exchange rates and such are easily measured. Laws and policies are stated in black and white, although enforcement is obviously a key issue. Alternatively, diversity differences are often not obvious and associated problems are neither easily diagnosed nor corrected. The focus here is on these ‘mushy’ diversity issues that often have a huge impact on the efficiency of international enterprise, and particularly on the management of people. Every year for the last seven years senior executives of 250 southern California firms have been surveyed regarding their firms' management functions activities. Through these years
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Internal and External Factors 3 executives have identified ‘diversity differences’ as the most serious and persistent problem affecting their international sales and operations. ‘Financial considerations’ were particularly important during the Mexican and Asian financial crises during 1994–5 and 1998–9, respectively. ‘Foreign government regulations’ were also consistently mentioned as problem areas. (Goodpaster, Nash, deBettignies 2005) But, the problems associated with diversity differences have been most salient for these American executives managing mostly high technology companies. This was found to be so even though, as mentioned above, the diversity barriers are often hidden. The good news in the data is that during these years the ‘heights’ of all these barriers have been apparently shrinking. Management functions are becoming difficult to conduct. The interviewees suggest that the Internet is helping overcome time and distance barriers and is making communications, even the cross-diversity ones, more efficient. European unification has also played a role. These trends are very encouraging. Although, it may be that the unusually large cash flows typical at southern California companies in the late 1990s has made all problems seem less severe. Diversity has a pervasive impact on the management of human
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4577876__Internal_and_External_Factors_ - Internal and...

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