Q. 1. “Management involves creating an internal environment.” Explain.
Answer.
The internal environment of an organisation refers to its internal conditions, like the quality and quantity of the workforce, the production technology used, the resources available, the rules and regulations framed, etc.,which are essential for the smooth running of the enterprise. The modern approach to management suggests that management of a successful firm requires the creation of an internal environment which is conducive to changes in the external environment. Since a business operates in a dynamic environment, it is essential for its internal environment to be adjusted in accordance with the changes in the external environment. For example, suppose a company manufacturing consumer goods decides to manufacture electrical home appliances with in built transformers, as the technology for the same becomes available. In order to adopt the new production technology it becomes necessary to change the ‘internal environment’ of the company, i.e., to train the work-force accordingly, make arrangements for the infrastructure required for adopting the new technology, etc.
Answer.
The internal environment of an organisation refers to its internal conditions, like the quality and quantity of the workforce, the production technology used, the resources available, the rules and regulations framed, etc.,which are essential for the smooth running of the enterprise. The modern approach to management suggests that management of a successful firm requires the creation of an internal environment which is conducive to changes in the external environment. Since a business operates in a dynamic environment, it is essential for its internal environment to be adjusted in accordance with the changes in the external environment. For example, suppose a company manufacturing consumer goods decides to manufacture electrical home appliances with in built transformers, as the technology for the same becomes available. In order to adopt the new production technology it becomes necessary to change the ‘internal environment’ of the company, i.e., to train the work-force accordingly, make arrangements for the infrastructure required for adopting the new technology, etc.
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