To
start up a business is not an easy thing, but operating and manage is harder
than just start up a business. There are always many obstacles are waiting at In front of the way. For example, the impact of the currency change, substitutes
product, financial issues, and so on. As a result, some of the company has
successfully overcome the difficulty, but some of the companies may fall down
on the half of the road. However, the factors that cause all of this may be
divide into two types are Internal factors and external factors.
INTERNAL
One
of the most important internal factors that may affect the effectiveness of the organization is surely the structure of the organization. Generally, the organization has 4 types of structure, which is the functional structure, divisional
structure, matrix structure, and also flat structure, each of them has its own
advantages and disadvantage. A suitable type of organization structure is very
important to differentiate the job occupation with the function and create the
flow of communication throughout the company, and it will be easier to hold
accountable. The structure that has been choosing is the functional structure
which is also known as a bureaucratic organizational structure. The reason is
functional structure is the more common and simple structure compared with
other types of structure, which may help employees more quickly to have a
better understanding of their responsibilities and adapt to their own job.
Another internal factor will be the leadership of employees, especially the employee
who holding important positions such as the CEO. An employee with great
leadership very important to unite the employee to work together but not to do
their own job and do not cooperate with others. This will totally become the difficulty
of communication and transferring of the information. However, if the employee
leads their member well, every function and job will be neater and less
confusing in work. Other than that, great leadership may help the member to
grow up with real-time experience and training, learning. Indirectly the great
leader makes the employee grow and increase the effectiveness of the work.
Besides
that, the organization's culture is also very important for an organization.
Organizational culture can also divide into many types such as the power
culture, role culture, task culture, and personal culture, and so on. A good
organization culture can provide good cooperation between members and bring the
benefit to many of the aspects of the organization such as the employee may
easier to know each other, cultivate feelings, and trust each other in the
work. Try to ask, if the employee cannot
cooperate well, how can the organization operate effectively.
EXTERNAL
When
come to the external factor, the most dangerous element that an entrepreneur
cannot ignore was the competitor, unless the business idea was totally new and
unique cannot be duplicate by other people. To achieve the success of the
organization mission and business idea, it will become impossible if there are
no capital or profit. However, the biggest influence from the competitor will
be show on the profit, and entrepreneur should not be able to control what
their competitor does. If there was not enough profit, it will totally bring an
impact to the company and affect the business operation and effectiveness of
the organization.
External
factors are commonly difficult or cannot be predicted and control especially
the economic trend. Entrepreneurs should always have a good sense of the trend
change, and always implement good risk management. After that, an entrepreneur
should adapt their business strategy to make the operation most suit to the
economy to ensure the effectiveness of the organization. For example, when the
economic forecast an economic depression, the organization will decrease the
budget, eliminate some of the unimportant, and not urgently expenditures to
decrease the influence of the economic trends. This shall be able to help the
organization stay effective and less risk.
Another
factor that may affect the effectiveness of the organization must be
technology. One of the main reasons to develop technology is to bring
convenience to human life. It was also mean that to make the operation and task
become simple and easier. In fact, we can see the outcome of the development of
technology in the history and nowadays. For example, the people before counting
using the abacus but now the calculator came true, people before record the
information with writing it in paper and so on, but nowadays people are record
information on the computers and it was easier to search and sort out. In
conclusion, the development of technology will greatly increase the convenience
and effectiveness of the organization's operation.
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