THE ENVIRONMENT UNDER WHICH MANAGEMENT IS PRACTISED

Definition Of Environment

Organizations do not operate in vacuums rather they operate within the setting of a larger system which constitutes the environment Environment generally refers to the surroundings, circumstances and influences on individuals or organizations. The effects of the environment can either be positive (i.e. beneficial) or negative (i.e. cost/constraints)

Although constitutionally the power of managing organizations rests with management, which should use its ability to make decisions, in real life this is not always possible because the environment exerts pressure on management. These pressures are what are referred to as environmental constraints.

The environment has also been defined as the aggregate of socio-cultural, economic, and physical conditions that influence the life of an individual, organization or community. No enterprise of any kind can operate in the absence of environmental constraints, or restrictions imposed by the organizational surroundings. While managers exercise power their authority is always limited by the environment, of necessity then, all enterprises must adjust to the environments in which they exist. Every organization has two types of environments: Internal (task) and External (general).