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CHAPTER 2   •  The Management Environment    63
                    Just imagine how these population trends are likely to impact global organizations and the   technology
                    way managers manage.                                                          Any equipment, tools, or operating methods that
                                                                                                  are designed to make work more efficient

                    How Does the External Environment Affect Managers?



                                                Knowing  what the various components of the  external
                    2-2     Discuss how         environment are and examining certain  aspects of that
                          the  external         environment are important for managers. However, un-
                           environment          derstanding  how the environment affects managers is
                                                equally as important. We’re going to look at three ways
                          affects managers.     the external environment constrains and challenges man-
                                                agers: (1) through its impact on jobs and employment,
                                                (2) through the environmental uncertainty that is present,
                    and (3) through the various stakeholder relationships that exist between an organization and
                    its external constituencies.


                    JobS and  EmploymEnt.  As any or all of the external environmental conditions
                    change, one of the most powerful constraints managers face is the impact of such changes
                    on jobs and employment—both in poor conditions and in good conditions.  The power



                                    :::::::   Technology and the Manager’s Job   :::::::

                                   Can TEChnoLogy ImPRovE ThE Way managERs managE?

                     Continuing advancements in technology offer many exciting possi-  smartphones, organizational intranets, and other IT tools, organiza-
                     bilities for how workers work and managers manage. Technology   tional members who work mainly with information can do that work
                     includes any equipment, tools, or operating methods that are   from any place at any time.
                       designed to make work more                                          Finally, technology is also changing the
                       efficient. One area where technol-  Twenty-five billion. That’s   way managers manage, especially in terms of
                     ogy has had an impact is in the   the number of “things”           how they interact with employees who may
                     process where inputs (labor, raw   (smartphones, smartwatches,     be working anywhere and anytime. Effectively
                     materials, and the like) are trans-  climate-control system        communicating with telecommuting individu-
                     formed into outputs (goods and   sensors, kitchen refrigerators,   als who may simply be working from home or
                     services to be sold). In years past,   cars, etc.) Gartner Inc.    who may be working halfway around the world
                     this transformation was usually   predicts will be connected to    and ensuring that work goals are being met
                     performed by human labor. With   the Internet by 2020. This        are challenges that managers must  address.
                     technology, however, human labor   Internet of Things (IoT)        Throughout the rest of the book, we’ll look at
                     has been replaced with electronic   is transforming businesses     how managers are meeting those challenges
                     and computer equipment. From                                       in the ways they plan, organize, lead, and
                     robots in offices to online banking   and disrupting industries and   control.
                                                                                   25
                     systems to social networks where   societies around the world.     If your professor has assigned this, go to the
                     employees interact with customers,                                 Assignments  section  of  mymanagementlab.
                     technology has made the work of creating and delivering goods and   com to complete these discussion questions.
                     services more efficient and effective.                  talk about It 3: Is management easier or harder with all the
                        Another area where technology has had a major impact is in   available technology? Explain your position.
                     information. Information technology (IT) has created the ability to     talk about It 4: What benefits  does technology  provide
                     circumvent the physical confines of working only in a specified orga-  and what problems does technology pose for (a) employees and (b)
                     nizational location. With notebook and desktop computers, tablets,   managers?
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