The Role of the External Environment in the General Development of the Management Theory

Introduction

The evolution of the management theory is a process that has never stopped. As such, it is difficult to gain a perspective on how this process really began or who were the people beyond the concept now known as management theory. However, we can acknowledge the fact that a certain group of people made the first set of contributions that established management theory into what it is today.

An interesting factor to consider is what moved the pioneers to devise ideas that led to the development of the management theory. This particular factor is the external environment that introduced the need for the existence of management theory.

The External Environment

The external environment is a very pervasive force that directly affects how an organization functions. It is divided into two parts: directly interactive and indirectly interactive. [1].

A directly interactive means that the environment has an immediate and firsthand effect on the organization. A very good example of this is a competitor in the market. As soon as [i]competition comes into the picture, it can directly influence the organization sharing the same market. With an acknowledged competitor coming into the picture, an organization is forced to take action. Depending on the nature of the competition, the organization will be forced to either take on an offensive position or capitalize on its strengths.

An indirectly interactive environment, on the other hand, means that it does not directly affect the functioning of the organization. This includes social concerns, political and legal, technological, economic, and global issues. However, at some point, these things may eventually affect an organization although it may take a while.

The Developing Management Theory

The most significant factor that influenced the development of the management theory may be the indirectly interactive environment. During the industrial revolution, the management theory started to become...