THE INFLUENCE OF BUSINESS ENVIRONMENT ON THE PRODUCTIVITY OF BUSINESS ORGANIZATION

1.0 Introduction

1.1 Background of the Study

Business organization is a formal system of co-ordinate activities of a group of people working co-operating towards a common goal, under authority and leadership. The concept of formality means that they came into existence in out society Nigeria at a point in time with a view of accomplishing formal goals.

These formal goals are the basis for their legitimacy to exist in our society since these goals have aspects of functional relevance for the societal development and national growth.

Obviously, no business venture is done in isolation of the prospective investor and customers. A business outfit that does not command patronages is not fit to exist. This is why it is pertinent to state that all business must co-operate with the environment to avoid blunders.

There are certain key elements or factors that are often considered in the over all or total business environment there include among others.

1. Socio-cultural environment
2. Market/competitive forces
3. Political/legal forces
4. Technical forces Etc.

These have been classified under task core and general environment. Business operations are carried out within an environment that is besieged by a number of problems and constraints. Business exists in an ever changing world where it must interact with and respond to many environmental forces.

Location of any business venture of organization has certain features of characteristics that must be associated with it before it can take off and flourish else its motive will be defeated. Business administrators must carry out feasibility studies before establishing any such an outfit in any given moment and place.

There are certain key factors a business administrator of manager must consider pertinent which include the environment, location prospective users of the products, accessibility, access roads, and finance. Manager of any such business venture must be very verse in all aspects of management. He must be customer friendly, must exercise a sound academic and professional knowledge of the organizational requirement. The beneficiaries must have cause to invest in the establishment, which means that it must encourage productivity and profit.

The quality of the working personal will be satisfactory to encourage quality output the input-output ratio or deposition must be promising. The relationship between management and staff must be very cordial so as to attract investors. The relationship between the organization and its neighbours should be encouraging to ensure inter-managerial exchange of resources including sound and professional ideas and manpower- technical manpower contributions.

The environment must be devoid of rancor and acrimony so as to attract potential investors and manager of sound managerial and professional acumen. The organizations disposition towards the welfare of its staff must be very dynamic and encouraging to ensure greater productivity and staff satisfaction.

The ecstatic beauty of the entire environment must be worthy of emulation. Any good/sound administrator must consider recreational facilities vital to the growth of his organization as this will limit the activities of his personnel to the organization area of jurisdiction without unnecessary man-hour losses on frivolities. Any dynamics and promising establishment will be futuristic that is it must be future-oriented. There must be a long term planning rather than short term that is short lived. There will be room for continuity for the growth and development of the organization.

The behaviour/activities of the managers should be exemplary since their behaviour influences their staff. The general staff disposition and the general administrative demeanor speak volume of the tone of the organization.

These various factors influence the life of the organization. The growth and development or expansion of the outfit becomes dependent on the quality of the personnel. The managers must be transparently honest, financial prudence will be their guiding principles, as this alone will increase the profit margin while the profit margin attracts or dispels customers.

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1.2 Statement of Problem

One can rightly observe that business operations and organization are mostly carried out within an environment that is besieged by a number of problems and constraints. According to Ezekwe B.C (1999) most countries irrespective of their primitive or modern stature degree and extent of civilization, social and economic advancement educational attainment, the socio-economic status of their people and their business organization and orientation appear not to be the same. There difference in national outlook and individual differences/capacities. There are also diverse natural gifts to the people therefore, the environmental factors that could influence any business organization are varied but the restrictive guideline governing the system becomes the major constraint militating against such business venture and the proliferation of business without due environmental consideration.

The dynamic society demands organized and articulated programmes that will determines the degree of acceptability and patronage in a changing business world. Consideration must be given to types of business located in an environment to ensure adequate coverage and protection as these encourage productivity.

However, the organization must choose appropriate technology relevant to their business operation and also react or adapt to the demands of the environment where they are located so the choice of technology and environment will determine the organizational structure, which an organization will use to achieve its overall goals. This is because environment and technology determine the three flows of activities in business organization namely input through (Technology) and out put of activities.

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1.3 Purpose / Objective of the Study

The broad objective of this study is to identify environmental influence and major constraints militating against productivity in business organization.

Furthermore the project will identify the environment problem and contributions adequate environment analysis have in survival and sustenance of business organization. Finally this study made practical recommendation based on the findings on immense benefits from environmental study and control in the life business venture.

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1.4 Research Question

The study suggests that strong performance requires more than an appropriate match or strategy to environment other words environmental analysis and diagnosis need to be done by the strategist to determine the magnitude and direction of opportunities and threats in order to respond appropriate.

In view of this research work I shall attempt to address the following central issues.

1. what are the strengths and weakness of the organization?
2. what is the impact of the environment on business organization?
3. does the company have adequate supply of its factors of production?
4. Do these factors give the company any competitive advantage over other companies?
5. how can business exploit the opportunities in the environment?
6. how does the company respond to the changes in the environment?
7. does the organization engage in market research? Has this contributed to the ability to generate new product and new approaches to doing business?

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1.5 Research Hypothesis

• Ho: in the event of change in economic, the organization does not experience changes in productivity
• Hi: in the event the change in economic, the organization experience changes in productivity.
• Ho: the monitoring of the environment does not create impact on the organization.
• Hi: the monitoring of the environment create impact on the organization.

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1.6 Significance of the Study

The purpose of this work has greatly been outplayed. This work greatly shows that the micro and macro economic situation in the world have necessitated the need to explore the influence or business environment on the productivity of business organization.

Consequent upon this also is the proliferation of business without adequate feasibility studies which will guarantee unmitigated production and liquidity ration of capital.

This study will be beneficial to business organization as it gives numerous reasons why feasibility studies should be conducted in order to establish the organization to be sited to ensure maximum productivity in a competitive market.

Finally students and potential investors for knowledge acquirement also equipped good future business administrators in any part of the world and for wise investment decisions.

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1.7 Scope / Delimitation of the Study

This research work on the influence of business environment on the productivity of business organization will be centered the selected business organization in Owerri.

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1.8 Limitation of the Study

Problem and prospects, the major focus in both small and medium scale business organization in order to determine their various degrees pf environmental influences militating against productivity in out changing business world.

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1.9 Definition of Terms and Concept

Organization:

This is a deliberate association of two or more individuals working co-operational towards a common objective under authority and leadership.

Business Organization:

These are organization primarily oriented towards economic productions.

Productivity:

A measure of how well resources are brought together in organization and optimally utilized for accomplishing a set of results.

Management:

This is the process of directing co-coordinating and influencing the operations of an organization so as to obtain desired results and enhance performance.

Technology:

The science of technical process in a wide, thorough related field of knowledge. This industrial technology embraces the chemical mechanical and physical sciences as these are applied in industrial processes.

Decision Making:

This is a series of steps that starts with an identification of problem under consideration. It can simply be said to mean a deliberate adoption of means to ends.

Effectiveness:

The extent to which an organization as a social system given certain resources and means, fulfils its objective without incapacitating it means and resources and without placing undue strain upon it members.