Technological component changing effects on a company
Question 2
Several changes in the external environment can affect the planning, organizing, leading, and controlling decisions in the internal environment. For example, during this Covid-19 pandemic, the demand for the masks had highly increased. Apart from that, the mask manufactory actually can sell the masks at a high price to maximize their profit. But they cannot do so due to the political environment, which is government regulation, which has set the maximum price of the masks. Hence the organization has to make a plan to make sure they have other competitive advantages that can attract customers instead of using the low price.
For organizing, technological component changing will affect the organizing structure of a company. For example, the technical component changing, such as the existent of spreadsheets, will help in the departmentalization of a traditional cafe business. The functional departmentalization, such as accounting, will be able to calculate the data more effectively efficiently with a spreadsheet. In customer departmentalization, the company can use the website or software to search for information about which are the best location for them to open a new cafe. And process departmentalization also changes, as the waiter can use the technology such as tablets to take orders from the customers.
For leading, the demographic and lifestyle component changing will affect the leading. Initially, according to the business culture, the leader of an organization is usually taken by the people who have older age as people think they might have more experience than younger ones. But nowadays, the demographic component had to change, even the young man from Gen X or Gen Y can be a leader of an organization if they have the skill and ability to handle that position. For example, Mark Zuckerberg, the CEO of Facebook, is from Generation Y.
For controlling decisions, the technological component changing, such as the use of smartphones and HRIS software, can help the company to monitor their employees to ensure the organization process is working as plan. For example, the HRIS software can record the employees’ attendance so the company may know the status and employee performance. It will improve the employees’ performance as, according to McGregor’s Theory X, the employees must be carefully controlled.