- 03/04/2013
- Posted by: essay
- Category: Free essays
Economic forces. Factors in the economic environment must be constantly evaluated, because the state of the economy affects the goals and objectives and ways of achieving them. The rate of inflation, the international balance of payments, levels of employment, and business lending rates, etc. Each of these may represent either a threat or new opportunity for the company. Thus, fluctuations in the dollar against the currencies of other countries can cause gain or loss of large sums of money.
Political factors. For business is very important political stability in society. It depends on this level of investment and other types of resources in a particular region. The ratio of administrative authorities to the business is reflected in the establishment of various privileges or duties, or who are developing business in the region, or replacing a hundred, creating unequal conditions for different organizations. Also, there are the techniques of lobbying the interests of certain industry groups in government, which also affects the whole business as a whole.
Social and cultural factors. In organizing the activity can not be ignored the fact that the cultural environment occurs. It is, above all, has the prevailing social values and traditions of life. On this basis the standard of conduct is based. It is well known the fundamental difference between American and Japanese standards. In the first case, the standard is expressed in “individualistic” approach to the organization, and the second – in the “family” approach. From this pattern of behavior in one case, a desire for career growth with a regular change of jobs (in the U.S. is that people should change jobs every few years) in the other – people working in the organization of life, dating back to the chief as his father, who to listen, according to Organizational culture and environment (2010).
Discussion.
The discussion section will focus on key issues related to the topic of the study, including the essence of the impact of the cultural environment on the organizational performance and the extent to which it affects the organizational performance, if affects at all. 
According to Nordic Journal of African Studies, “The following quotes were gathered from anonymous sources help to lend credence to the fact that the culture of business varies from place to place. American: From our pragmatic individualistic approach, many of the things the Japanese do appear to be symptoms of warped minds. Japanese: The cold objective approach of the American business man who hires and fires mechanically and whose primary concern is to make as much profit as possible is not only inhuman but sinful. British: As far as we are concerned, business is not charity.”
Causes of organizational change have factors. For example, demographic factor: changes in population (increase in life expectancy, decline in natural increase, etc.) require a change in the composition of the basket of products, types of services that organizations provide to the environment, and marketing methods, according to the population. For example, because of rising life expectancy, many nursing homes offer social services for the elderly, such as pool and gym.
Causes of Technology: Innovation and technological developments and computerized information systems require change and adaptation to meet the competitive market. It can be in several layers, for example: it was customary to sell and market video tapes. With the development of advanced technology, now an organization that made a change will continue to sell video tapes may close and go bankrupt.
Historical factor: the organization’s history, its successes and failures, changing the types of products and services over time, changing the nature of management, organizational culture or vision. For example, many companies begin marketing a limited product portfolio, and over time both expand and market additional products, according to the market.
Political factor: characterized by cooperation between countries, common markets, military alliances and trade agreements, which require adaptation and adjustment in terms of organizations. In addition, the global terrorist threats, security preparations require corporate authorities of many (airports, port authorities, etc.) and add to the structural changes, functional, and technology. For example, in times of terrorist attacks in Israel, it is necessary to employ a lot of security guards restaurants branches, which increases the need to prepare for the organization. Social causes: civil rights, environmental protection, equal opportunities, which changed the recruitment and employment policy. The issue of the impact of the cultural environment on organizational performance and development is widely discussed, but it is obvious that there is an impact in that.
Conclusion and recommendations.
The conclusion will summarize the paper and define effects of the cultural environment on the organizational performance. There will be provided basic recommendations on the organizational performance and development, including the elaboration of code of conducts based on universal norms and values and adaptation of organization to the multicultural environment.
Any organization is operating in at least one cultural environment. Therefore, socio-cultural factors, and above all, life’s values, traditions, attitudes, affect the organization. For example, the value system of American society bribes to obtain a lucrative contract or policy benefits, defamation competitor rumors are unethical and immoral actions, even when they can not be regarded as illegal. However, in some other countries, such practices could be considered quite normal, according to Organizational Environment and Culture (2010).
On the basis of special studies, they have shown that changes and values of the workers. In general, the relatively young workers want to have more independence and social interaction at work. Many of the workers and employees tend to work that requires more flexibility, is more substantial, does not infringe the freedom and awakens in man-esteem. Many of today’s workers do not believe that his entire working life was spent in the same organization. These settings are particularly important for managers with regard to their basic function – they motivate people with the goals of the organization. These factors resulted in the appearance and positions on public issues of the corporation.
Socio cultural factors also influence the products or services that are the result of the company. A good example is the production of clothing. Another example – is a passion about nuclear power, which had a very negative impact on many related firms.
By Remark R. Jones, former chairman of the company “General Electric”, an organization must be able to anticipate changes in public expectations and serve them more effectively than competitors. This means that the corporation shall be modified, consciously transforming the organization adapted to the new environment.
Organizational change is an ongoing process designed to match the organizational systems and processes internal and external changes that occur around. It should be noted that the success of the organization depends on employees, focuses on changing the behavior of individuals and groups within the organization. Organization maintains relationships with the environment, which is a dynamic system. Necessarily creates dynamic changes. Organization can survive (in the long run) if and only if the organization’s structure and the ways to conduct environmental conditions fit in the operation. All in all, cultural environment has considerable impact on organizational performance and development in the modern world.
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