4. Management Process

Management Process: MIS & Environmental Factors

In today’s complex and dynamic world, managing an organization involves much more than planning and directing. It requires continuous analysis, coordination, adaptation, and effective use of information systems and environmental awareness.

🔷 What is the Management Process?

The Management Process refers to the systematic series of actions that a manager undertakes to achieve organizational goals. It involves:

1. Planning – Deciding what to do and how to do it

2. Organizing – Structuring resources and responsibilities

3. Leading/Directing – Guiding teams toward objectives

4. Controlling – Monitoring performance and correcting deviations

These steps form the core of every managerial activity and are interdependent in practice.

💡 Definition by McFarland:

“Management is a process by which a manager creates, directs, maintains, and operates an organization through systematic and coordinated human efforts, using resources optimally to achieve objectives for the growth and survival of the organization.”

This definition highlights two key elements:

• Systematic human effort

• Optimum use of available resources

🖥️ Role of Management Information System (MIS)

Management Information System (MIS) is a structured framework used by managers to gather, process, and analyze data that aids decision-making.

🔑 Key Functions of MIS:

• Collects relevant information from internal and external sources

• Processes data into useful insights

• Helps in setting goals, identifying gaps, and making informed decisions

• Provides feedback for future planning

• Enhances operational efficiency

MIS is the backbone of modern strategic management, helping managers stay updated and aligned with changing business needs.

🌍 Environmental Factors Affecting the Management Process

A manager doesn’t operate in isolation. The external environmental factors surrounding the organization greatly influence the management process and long-term success.

Here are the 7 major environmental factors every manager must understand and evaluate regularly:

1️⃣ ECONOMIC Factors

• Refers to the financial condition of the population around the organization

• Affects purchasing power, market demand, labor cost, and investment potential

• Economic downturns or growth cycles influence organizational strategies

2️⃣ EDUCATIONAL Factors

• Concerned with the general educational level and qualifications of the local community

• Determines the availability of skilled manpower and training requirements

• Impacts productivity and innovation within the workforce

3️⃣ TECHNICAL Factors

• Reflects the technical skills and capabilities of the local workforce

• Important for manufacturing, R&D, and operational efficiency

• Affects the adaptability to automation and technology upgrades

4️⃣ POLITICAL Factors

• Involves the stability, priorities, and actions of the local or state political leadership

• Policies related to labor laws, subsidies, taxation, and industrial support

• Political shifts can directly impact organizational operations and decision-making

5️⃣ LEGAL Factors

• Encompasses rules, regulations, policies, and legal frameworks enforced by governing bodies

• Includes employment laws, environmental rules, business licenses, and compliances

• Ignoring legal obligations can lead to severe consequences for any business

6️⃣ GEOGRAPHICAL Factors

• Involves the location of the organization, availability of natural resources, infrastructure, and transport

• Affects raw material sourcing, delivery timelines, and operational costs

• Geographical constraints often dictate supply chain and market reach

7️⃣ CULTURAL Factors

• Refers to the beliefs, faith, religious practices, and social behaviors of people in the region

• Strongly impacts marketing, HR policies, work ethics, and public relations

• Culturally insensitive decisions may lead to social backlash or loss of trust

🔁 The Importance of Feedback

Managers must treat environmental study as a continuous process, not a one-time task. Regular feedback collection from internal teams, customers, and market conditions is essential to adapt strategies and stay competitive.

Summary Table: Environmental Factors in Management

Factor	Influence on Management
Economic	Buying capacity, cost control
Educational	Talent pool, skill development
Technical	Process efficiency, innovation
Political	Policy support, regulation risks
Legal	Compliance, operational freedom
Geographical	Resource access, logistics
Cultural	Market behavior, branding, HR

 Conclusion:

To manage effectively in today’s dynamic business world, a manager must not only focus on internal efficiency, but also maintain a sharp understanding of the external environment.

By integrating Management Information Systems with regular environmental analysis, a manager can make informed decisions, reduce risks, and position the organization for growth and long-term sustainability.

A smart manager doesn’t control the environment — but adapts intelligently to thrive within it.