General environment refers to the factors or forces outside of the organization that may influence the performance and operation in an organization. The general environment has five factors. The factors are political dimension, economic dimension, social dimension, technological dimension, legal dimension.
Factors of the environment are broad and non-specific. As the factors are the part of the external environment this is why the organization has no or little control over the factors or forces of the general environment. Companies have to adjust to the general environment’s forces. These factors also have a major impact on task environment which may include the product supplies, working process. These factor influences the success of an organization. As the factors have a great impact on success so the firm applied strategic method over the factors (Mital, Robinson & Pearce 2012). This adjustment gives the firm a long-term benefit and creates a market goodwill it impacts on the workers as well the working environment.
FIGURE 4. General environment (Mital, Robinson & Pearce II 2012)
5.1.1 Political-Legal Dimension
Political dimension refers to the government or political party’s influence on the business, the relationship between government and business or overall political situation of a country (Mital, Robinson & Pearce II 2012). It is necessary to maintain a good relationship between business and government to get a supportive
Political-legal
environment and to avoid political violence. A country has some policy to regulate the business competition such as import policy, export policy, taxation policy, investment policy etc. Lower-income and middle-income countries pursue state-driven mercantilism which helps to reduce imports and increase exports.
Sometimes the government produce subsidizes when the cost is high to the customer's purchase capability.
The developed countries are likely to give more emphasize on privatization rather than on state ownership.
Government impose the rules and regulation to balance the trade market. A business organization is in the peak when the political environment is supportive of the business. Political environment sometimes affects the working environment directly in many ways such as: in a working hour, wages, vacation are affected by the political dimension. (Feng1997.)
5.1.2 Economic Dimension
Economic dimension explains the overall condition and the economic system in the organization. Economic factor focusses cost management. Basically, the economic dimension includes some factors such as inflation, interest rate and unemployment. Economic dimension affects the demand for the product. During inflation, a company raise its product price due to increasing its production cost. A country’s economic condition highly depend on their business organization. On the other hand, business market attractiveness highly depends on the country’s economic condition. A country’s economic condition can be boom or recession or depression, it can be fluctuation. The business is also like that; the manager must have the capability to forecast the state economy. Manager forecasts the economic situation and takes the decision to balance with fluctuation. The manager considers the consumer’s income and their consumption pattern.
When the business of a country is in boom position then the economic condition will be a boom. So, the economic dimension has a great impact on the country’s economy. (Feng 1997.)
5.1.3 Socio-Cultural Dimension
Socio-cultural dimension such an environment which refers the human behavior, customs, norms, values and demographic characteristics (Mital, Robinson & Pearce II 2012). In different society’s cultures are also different. Manager studies enough to gather this information to conduct that society is likely to value and appreciate. It includes lifestyle changes, social mobility, attitudes toward technology and people’s values,
beliefs, behavior etc. Business needs to conduct culture to culture and have to provide such a product or services which meet the customers' demand. Product has to change along with changing the society’s culture. From all of the socio-cultural factors, the most sensitive factor is the religious factor. A human being is highly sensitive about their culture, if the product or services go opposite their culture then they don’t accept that product or services. The company must pay attention to the socio-culture factor. As the different societies have a different culture so the working manager should focus on their culture. (Bhuyan 2012.)
5.1.4 Technological Dimension
Technological dimension makes the working environment easier and saves time. Technological dimension is the most important factor, managers must be more careful to take the investment decision (Mital.
Robinson & Pearce II 2012). Technological factor includes the internet, computer, machinery and other modern technology. Technology makes the task easier and helps to produce more. Nowadays most of the firms are automated, and this technology indicates the firm’s resources and its stability. Working managers must predict future technology and customers demand. Managers are also considering the changes in technology and the outcome of the technology. In this modern era, technology is developing rapidly, and the firms are also dependable on technology. Technology ensures the task is more accurate and completes the task in time. Humane labor is more expensive and it’s difficult to manage them. Managers need to motivate them, control them, and supervise them yet after that human labor void their responsibility. (Mital, Robinson & Pearce II 2012.)
5.1.5 Legal Dimension
Legal dimension refers to the laws and regulation in a country. There are many laws and regulations in business operation such as factories act, contact act, trade act, export and import act and company act (Bhuiyan 2013). Business laws are imposed by the government to protect unfair market competition. These laws also protect the consumer and the society at large (laws for merger, acquisition, industry regulation, compensation policy, global business laws etc.). As the business has become a global business and the market is too much competition. To monitor this global business and ensure the fair competition an
organization has been established. The name of that organization is the World Trade Organization (WTO) they monitor the business policy and consider the consumer right and social responsibility. Government impose the tariff on the foreign product and imported business. On the other hand, domestic product doesn’t need to pay the tariff and they are able to sell their product at a lower price. This is one method to protect the domestic firms. Legal dimension affects the working environment by applying the rules and regulation such as wages, working hour, group insurance etc. (Rahman, Khanam & Absar 1999.)
5.2 Task Environment
Task environment refers to the external environment of a firm which affects the firm’s operational activities, advertising activates and marketing activities. In a word, task environment refers to the working environment for an organization. Task environment directly involves the organization’s goal. Task environment informs us or provides the necessary data or information about the operating and marketing activities of the firm. Any factors in business which directly involved with a business must be a task environment’s factor. The most common factors of task environment are competitors, customers, suppliers, regulators and working partners. These factors affect the working environment directly or indirectly. Task environment needs experienced and skill managers to manage the task environment (Mital, Robinson &
Pearce II 2012).
The task environment managers follow the working management method to maintain the factors. If the managers are failed to maintain the factors it will affect the production and product market of the organization. Task environment may form part of project management and process management to serve efficiently in the organization. It also helps to identify the responsible person, team or department for the success of the company. (Mital, Robinson & Pearce II 2012.)