Some Management forces or factors
Economic factors refer to the general economic conditions and trends that may be factors in an organisation activity such as interest rates, labour, government policies, management and taxation. Economic factors influence the development of management theories and also affect the ways in which managers and their organisations behave in diverse ways.
Government fiscal policies such as increase minimum wage and reduction in income tax tend to increase the productivity of workers and the organisation at large. This is because; the increase in real income as a result of these fiscal policies motivates workers to put in their best to increase output or productivity. Based on F.W Taylor’s findings, which led to the development of the scientific management theory, he concluded that money is the only way to motivate workers and motivation should have a direct relationship with productivity. An increase in motivation of workers should ensure a higher productivity to the organisation at large and hence increased profit. Secondly, job specialisation is said to be achieved when a particular worker or group or group of workers area assigned to a particular job develops skills in performing the job efficiently. Adam smith noted that the difference in company’s performance was due to the fact that workers who specialised in a particular field of production became much more skilled at their specific task. He therefore concluded that increasing the level of job specialisation that is the process by which division of labour occurs as different workers specialised in different task overtime led to an increase in efficiency and higher performance.
Technological environment includes both the valuable tools and the ways in which people have learnt to apply those tools. This relates to the advances and refinements in any of the devices that are used in the conjunction with conducting business. Changes in technology go far beyond speeding up...