Write brief notes on internal environment and its relevance to management.

The internal constraints are internal to the organization and hence within the control of management.

Examples

1. Organizational charters and guidelines.
2. Organizational policies, procedures and rules.
3. Limited money, personnel or HR and other resources.
4. Higher level managers.

Constraints Imposed by Organizational Charters and Guidelines

Many organizations that is agencies, religious bodies and corporations have written documents
e.g. constitutions, corporate charters, By laws etc. that spell out what the organization is, how it is expected to function and what limits are set in the course of its operation. A charter is an official document granting rights like in a university.

Constraints imposed by Organizational Policies, Rules and Procedures

A policy is a guideline to managers that causes him to take action in certain ways e.g. training policy. A procedure is a way of doing things and a rule is a regulation. These are pre- determined plans that place limits on what an organization can or cannot do. e.g. a policy that specifies that all sales will to be made directly to the consumer. A rule that says that two members of the same family cannot work in the same department/company prevents such people from doing so.

Constraints imposed by Limited Money, Personnel and Other Resources

No organization has enough capital. Managers may be unable to recruit or to hire the best qualified people and purchase the best equipment because of insufficient funds. If there are insufficient financial resources, it means that the organization will be restricted in whatever actions it can take. They may also be limited by the personnel within the organization who may not have the necessary skills to carry out a planned activity. It will lead to postponement of an idea for organizational expansion. Lack of other resources will also limit managers in implementing other planned activities i.e. lack of information technology, physical resources etc.

Constraints Imposed by Higher Level Managers

Policies, procedures and rules are developed by higher level managers who also develop strategies used to achieve organizational objectives. By doing so, higher level managers dictate what the lower level managers can or can't do because lower level managers are responsible for the implementation of higher level management strategies.

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marto answered the question on March 4, 2019 at 07:09