How to Combat Business Failures, Essay Example

Introduction

The environment of a business plays a complex role on the operations both internally and externally. These external and internal factors make-up the environment of the organization and are directly linked to its ability to achieve its goal.

External

The environment outside the business can directly affect how human resource workers operate policies within the business. First, there is the physical element of external factors. Where the business is located is important. The physical surroundings can be a great determinant of the caliber of workers the business has (Pearce & Michael, 2006).  The housing conditions surrounding the business, the form of transportation, and even living costs in the vicinity of the location can impact the type of wages an employee may expect to receive.  Another external factor is the political element. Government rules and policies directly influence the way companies are operated. The managers must follow laws that dictate how human resources must be handled. The most influential of external factors are economic elements. The economic condition determines if a company will hire new workers, increase pay rate, or provide adequate insurance to workers. Currently, the United States is the most productive country in the world. When the economy is healthy, companies are able to hire more workers, which in turn decrease the unemployment rate.

Internal

The internal environment of an organization is often seen as the morale of the employees-are employees happy. Physical elements greatly affect the morale of the employees. Factors such as temperature, air quality, and noise level can both negatively or positively affect employee morale. One study conducted found that the highest percentile of unhappy employees directly stemmed from physical work place environment. The study found the seventy-four percent of workers were unsatisfied with air conditions in their workplace environment. Another twenty-six percent were not satisfied with restroom cleanliness (Hemraj, 2008). Another factor of internal environment is the social element-how well do workers and managers get along. When an organization is set up hierarchical ladder some employees have the potential to use their power in a negative way. As a result, the managers at the top of the ladder play a dominant role in the social environment. Consequently, these managers must be fair and people friendly. They must make rules and regulations that benefit the employees and be tolerable of differences.

Cultural Changes

One’s culture is made up of attitudes, beliefs, and values. Cultural changes affect both external and internal aspects of a business simultaneously. One’s culture dictates how he/she will conduct his/her self in society , so it is fair to say that one’s  culture will also affect behavior on a job. One aspect of cultural changes is the fact that more women are in the work force than ever before. In 2008, women accounted for more than 48 percent of the workforce in the United State (Hemraj, 2008).  Nonetheless, these women are still in their traditional cultural role of mother. As a result, employers are under pressure to provide women with equality in compensation and advancement opportunities.

Conclusion

Both internal and external factors have a significant impact on an organization’s ability to reach its goal. As a result, organizations must hire managers who are aware of these impacts to improve and ensure quality productivity. Efforts must be made to ensure employee morale is high, team-work is taking place, and that all employees feel respected.

References

Hemraj, M. (2008). How to combat business failures. Journal of Financial Crime, 12(2), 178-184.

Pearce, J.A. & Michael S.C. (2006). Strategies to prevent economic recessions from causing business failure. Business Horizons, 49(3), 201-209