Government Intervention in the Market Economy

Surname 1
Government Intervention in the Market Economy.
Student’s Name
Unit Name
Institutional Affiliation
Date of Submission

Surname 2
Explain the terms internal environment and external environment.
Internal environment refers to the conditions factors or events inside the organization that affect
its line of choice and action to be specific employee's behavior. Even though certain elements influence
the entire organization, others affect the manager singly. The leadership style affects the employees
directly. The progressive managers like encouraging the employees to decide on their own while the
traditional managers give direct information or instructions. The basic factors of an internal
environment are always leadership styles, mission statement and organizational culture in according to
Lee, Lee and Pennings, (2001, pg 303).
The mission statement: this is a statement which outlines why an organization exists and what
the organization represents. An organization statement tends to expound on the general purpose of the
organization encompassing the other characteristic which differentiates it from the firms of its same
type. Not all mission statements become effective in the business environment, but the effective
mission statements usually lead to effective input. The effective mission is very critical in today's
highly competitive environments and thus should be inclined towards the consumers.
An appropriate mission statement is precise in recognizing some intents of the firm including
consumers to be served, products and/or services to delivered and produced, where the products and/or
services will be produced and the ideology that will be deployed. The policies of the company are the
guidelines that the way specific situations in the organization are handled. Like the policies in the
colleges and educational institutions have maintained prerequisites, admittance, waivers, and grade
appeals, the firms in the like manner come up with policies to guide the managers in making decisions
concerning the frequently occurring circumstances inside the organization. The policies of a firm
should always concur with the with the mission statement for it shows off the personality of the
organization (Hueske, Endrikat, and Guenther, 2015 pg 53).

Surname 3
The organizational structure: this refers to the hierarchical arrangement of people and task. This
structure finds out the information flow mechanism within the organization, the assignment of
responsibilities to various departments in the organization and giving out of the center of decision-
making in the organization. Mostly organizational charts are utilized to give a graphical representation
of the structure of companies. These are simply the graphical display of the line of authority and
information flow within the organization (Lee, Lee and Pennings,2001, pg 334).
The organizational culture: this element refers to the personality of the organization. The
organizational culture makes it unique and determines the activities of the members. It has four main
components; heroes, values, rites and rituals and social network.
Values refer to the fundamental beliefs that outline the success of the employees in the
organization. For instance, universities place high values on the publishability of the professors. In
case and a member of the faculty is published in a professional journal, he may increase his
opportunities of getting tenure. The universities always try to retain the professors during their
academic careers.
Next is heroes which is an instance of an individual who exhibits attitude, image and values of
an organization while acting as a mentor to other employees within the organization. A hero can be the
founder of the entire organization, but it's not confined to be a founder as it can also be a daily who is
hardworking (Grönroos, 1981, 238).
The third one is the Rites and Rituals: these are the occasional routines which the firm organizes
to identify high-performing workers. Company gatherings, awards banquets, in addition to the
quarterly meeting can be avenues to appreciate the employees that have done outstanding jobs. These
steps are taken to help inspire every other employee in the company for the rest of the year (Meyer, and
Scott, 1992).

Surname 4
Finally, is the social network: this generally to the informal or unofficial way of communication
within the firm, at times referred to a grapevine, as it comprises of those who have failed and the heroes
too. This network forms a platform for learning the cultures and values of the organizational culture do
produce an organizational climate which has the general workplace tone and the workers morale as its
components (Kreps, 1986). The attitude of the employees will determine the atmosphere of the work
environment. Resources do refer to the infrastructure, facility, machinery, people, information,
finances, supplies and the equipment's available for the use by an organization. The management of
philosophy is defined as the personal beliefs and value of the manager concerning individuals and work
and the manager can always regulate it. As per McGregor, the philosophy of the manager brings about
self-fulfillment prophecy. One manager handles his employees as kids who are given constant
instructions while the other manager handles his employees as competent adults able take part in
making decisions at work. All these views of a manager impact the behavior of a worker resulting in a
self-fulfilling prophecy (Kreps, 1986).
External environments
There refers to all conditions, factors or events from the outside that may affect the
organization. We may have directly interactive forces or indirectly interactive forces. The directly
interactive forces are the factors which impose the first-hand effect on the organization like a new
entrant into the market. The environment which has a distant impact on the organization.
Implementation of new laws may be an example that needs some change within the company (Ewusi-
Mensah, 1981, pg. 312).
1. Directly interactive environment (Ewusi-Mensah, 1981, pg. 305)
Customers who need satisfaction from the products and services they buy and use.