Importance for Managers to Understand the External Forces

1-Organization A

• first-line manager's job

• follow extensive rules and regulations
• work individuals

• top managers

• have creative decisions

 Organization B

• first line manager's job

• few rules and regulations to follow
• hard working and trustworthy
• work in teams

• top managers

• have creative decisions

• have goals  

2-Importance for managers to understand the external forces 

• External forces affect the organizations both directly and indirectly ,the managers don't have any control over the variables in such an environment. Accordingly, the managers cannot change the external forces that must change themselves  to align with these forces .

So it's important for managers to understand the external forces for six main reasons

• To understand how socio-cultural affect their organization

the sociocultural component is especially important because it determines the goods ,services and standards that society values

• To understand how demographic dimension affects their organization

Demographics are measures of the various characteristics of the people and social groups who make up a society .Age ,gender and people are examples of commonly used demographic characteristics

• To understand the technological component

Technological dimension impacts to scientific processes used in changing inputs (resources,labor,money) to outputs (goods and services) .The success of many organizations depends on how well they indentify and respond to external technological changes.

• To understand the economic dimension

The economic component reflects worldwide financial conditions

• to understand the global dimension

The global component refers to factors in other countries

• To understand the political and legal dimensions

Tax policies ,trade ,regulations and minimum wage of legislation are just a few examples of political and legal issues that may affect the way an organization operates.

3-Businesses built on relationships 

The basis of any relations ship is effective communication be it verbal or written, The more effective communication and rapport is built  a better understanding and relationship is developed .Similarly in a business environment .When a strong relationship and trust is built with all of your stakeholders for examples (your target ,customers ,employees ,suppliers ,shareholders...) you can get back from them what you want (satisfaction or/and profits ).