There are numerous factors that affect an organization or the management. Managers can monitor these factors/environments through boundary spanning — a process of gathering information about developments that could impact the future of the organization.
Following types of factor/environment affect management:
To lead an organization efficiently, every organization must know where it is situated, what
are its external and internal influences.
|Microeconomic Factors||Macroeconomic Factors|
|Company-specific influences that have adirect impact on its business operations and success. Components within the control of an organization can be managed and altered.||Broad economic forces and global events are out of control of any business or company. Forces indirectly affect company objectives. Volatile and risky, and a savvy manager must be agile to sidestep a cascading macroeconomic crisis to keep the company intact.|
|For example, a company’s revenue,Earnings and margin. The employees, stakeholders, the production volume of the products and the advertising campaigns can also be called microfactors.||For example, the country’s economic output, inflation, its political environment, unemployment, etc.|