The four functions of management are planning, organizing, leading, and controlling. Planning happens within each of these functions of a business and will deliver a strategic value. Organizing and leading will help to build a dynamic organization with mobilizing people. Incorporate continued learning and the ability to change and you have will have utilized all four functions of management which are the key to effective management. Internal and external factors influence the decision-making process that affects management. The competitive world of business is constantly changing; therefore, managers must consider people and businesses around the world. Globalization, technology, innovation, diversity, and ethics require widespread planning and are essential in every part of management. Red Wing Shoe Company is a 109 year company that has used strategic planning and organizational tools successfully to manage and market technology. This paper will explain how the internal and external factors affect the four functions of management within the Red Wing Shoe and will provide specific examples of globalization, technology, innovation, diversity, and ethics.
Globalization.
Globalization is an external force that has a major impact on the way managers run an organization. Globalization is the result of the important increase of cross-border trade, investments, cultural exchange, population growth, and growing economies (New World Encyclopedias, 2008). Globalization directly affects the core competencies of management or the four functions of management. These core competencies are the basics of management: planning, organizing, leading, and controlling (Bateman & Snell, 2011). Globalization causes situations to take place within an organization to which managers have no direct control over. This external factor causes organizations such Red Wing Shoe Company to update and monitor the company's business plan concerning these core competencies of management.
