Factors Affecting Management

There are numerous factors that affect an organization or the management. Managers canmonitor 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:

Microeconomic factors

Macroeconomic factors

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 businessor 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.